Sat Sep 14 08:55:58 UTC 2024: ## Government Intervention Brings Down Onion Prices in India

**New Delhi, September 14, 2024:** The Indian government’s intervention to curb rising onion prices has begun to show results, with prices falling in major cities within days of the initiative’s launch. The government initiated the sale of onions at a subsidized rate of Rs 35 per kg through mobile vans and outlets of NCCF and NAFED on September 5th.

The program, initially implemented in Delhi and Mumbai, has since expanded to Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati. The government has further increased the quantity of subsidized onions and broadened distribution channels to include e-commerce platforms, Kendriya Bhandar outlets, and Mother Dairy’s SAFAL stores in response to growing demand.

**Wholesale Intervention:** The government has also begun wholesale disposal of onions in major cities, starting with Delhi, Mumbai, and Chennai, with plans to extend to Hyderabad, Bengaluru, Kolkata, and eventually all state capitals.

**Logistics and Cooperation:** A dual transportation strategy involving road and rail networks is being implemented to improve logistics efficiency and reduce post-harvest losses. The Department of Consumer Affairs is working closely with state governments to ensure targeted supply based on demand and price trends.

**Confidence in Price Control:** With a buffer stock of 4.7 lakh tonnes of onions and increased kharif sowing area compared to the previous year, the government is confident that onion prices will remain under control in the coming months. The combination of enhanced retail and bulk sale strategies is anticipated to stabilize prices and ensure widespread availability of affordable onions.

**Prime Minister Modi’s Statement:** Prime Minister Narendra Modi on X reiterated the government’s commitment to ensuring food security and supporting farmers. He highlighted the government’s efforts to reduce the export duty on onions and increase the import duty on edible oils, which are expected to benefit farmers and increase employment opportunities in rural areas.

**Inflation Moderation:** India’s retail inflation based on movement in the consumer price index (CPI) was at 3.65% in August, marking the second consecutive month of sub-4% inflation. Reserve Bank Governor Shaktikanta Das, while noting the moderation, emphasized that there is still room for improvement. The government has tasked the RBI to ensure that inflation remains at 4% with a margin of 2% on either side.

Read More