Centre Begins Subsidised Onion Sale at ₹24/kg in Key Cities

Quick Summary

• The Indian goverment began subsidised onion sales at ₹24 per kg in Delhi, Mumbai, and Ahmedabad on September 4, 2025, to make onions affordable for consumers.
• Union Food Minister Pralhad joshi announced that about 25 tonnes of onions from the buffer stock will be sold in these cities through cooperative agencies like Nafed, NCCF, and Kendriya Bhandar.
• Subsidised onion sales will expand to Chennai, Guwahati, and Kolkata starting September 5 and continue until December.
• India’s government holds a buffer stock of 3 lakh tonnes of onions procured at an average cost of ₹15 per kg during the Price Stabilisation Fund (PSF) scheme for the year 2024-25.
• The nationwide average retail price for onions is currently ₹28 per kg; prices exceed ₹30 per kg in some cities.
• Government interventions aim to stabilize food prices amid a record domestic onion production estimated at 30.77 million tonnes (27% higher than last year).
• Despite stable domestic production and moderated inflation (general retail inflation was at an eight-year low of 1.55% in July),subsidised onion sales are depleting stocks ahead of peak festival demand.

Indian opinion Analysis
The subsidy-supported sale highlights the government’s active role in mitigating food inflation while ensuring affordability during high-demand periods like festivals later this year. Leveraging a robust procurement system under its Price Stabilisation Fund strategy reflects preemptive measures to manage supply chains effectively without imposing export restrictions-a balance between stabilizing domestic markets while retaining global trade competitiveness.

While such calculated interventions build consumer trust by addressing immediate concerns over potential price hikes during festive seasons, they also demonstrate agility given evolving market pressures from variables like weather anomalies or speculative hoarding behavior elsewhere.