Union govt sells subsidised onions at ₹25 per kg in city

The Union government on Monday started selling onions to consumers at a subsidized rate of ₹25 a kg, starting with Delhi, to stave off an inflationary spell amid rising prices of the vegetable.

- Zia Haq

The move is aimed at stemming runaway inflation in vegetables, which rose 37% in July, pinching household budgets; the government stepped in to sell tomatoes at a discount last month amid rising prices of that vegetable. But even as tomato prices appear to be easing, those of another vegetable, onion, are rising.

On August 11, the Union government announced it would sell onions from state-owned reserves to traders and bulk buyers to replenish markets. Nearly 1400 tonnes of onions have been dispatched to the targeted markets so far. On August 19, the government also levied a 40% duty on exports of onions, a move aimed at boosting local supply.