As onion prices surge due to lower supplies and delayed harvests, the Indian government has initiated measures to make this essential vegetable more affordable for consumers. Retail prices have skyrocketed in recent weeks, reaching ₹70-80 per kg, causing concern among urban consumers who rely on onions for various Indian dishes. To address this issue, the government is now selling onions at a subsidized rate of ₹25 per kg in over a dozen cities.
The rise in onion prices is attributed to delayed summer crop harvests, prompting the government to impose a minimum export price (MEP) of $800 per tonne to control overseas sales. MEP acts as a threshold to restrict exports below that price level. To further alleviate the situation, two state-backed food agencies have launched operations to sell subsidized onions from the government’s reserves, which total 500,000 tonnes.
Consumers in cities like Delhi, Jaipur, Chandigarh, and Hyderabad are among those benefiting from this initiative. The government’s intervention is already showing signs of reducing onion prices, providing relief to households and aiding the government’s goal of controlling food inflation.
Onion prices have been volatile throughout the year, influenced by extreme weather conditions and a deficient monsoon that affected crops in major onion-producing states such as Maharashtra and Karnataka. The government maintains significant onion reserves, which can be released to the market to stabilize prices when needed.
Despite the challenges, India’s annual onion production remains substantial at nearly 30 million tonnes, while the demand stands at 16 million tonnes. The government’s actions demonstrate its commitment to ensuring that this kitchen staple remains accessible to all, particularly in light of upcoming elections and the need to address food inflation, a top priority for the Modi government.
The availability of subsidized onions is a welcome relief for consumers, offering a respite from the recent surge in prices, and highlighting the government’s dedication to ensuring the affordability of essential food items.
