Business · India Bureau
Centre Launches Subsidised Onion Sales As Prices Surge Past Rs 62 Per Kg
With onion prices skyrocketing to Rs 62 per kilogram in Delhi ahead of the festive season, the central government has initiated subsidised sales of buffer stock at Rs 35 per kg. The sharp price spike has been attributed to hoarding, black marketing and intermediaries inflating costs.
LSN India ·
Onion prices have surged significantly across Indian markets, particularly in Delhi, where retail rates have climbed to Rs 62 per kilogram ahead of the upcoming festive season. The sharp increase has prompted the Centre to intervene in the market through subsidised sales mechanisms aimed at providing relief to consumers.
Government officials have attributed the price spike to a combination of factors including hoarding practices, illegal black marketing activities and the role of middlemen in the supply chain. These intermediaries have been blamed for artificially inflating prices and restricting the flow of supplies to retail markets.
In response to the crisis, the Centre has announced the release of buffer stock onions for subsidised sale at Rs 35 per kilogram, representing a significant discount from prevailing market rates. This intervention aims to cool retail prices and ensure consumer access to the essential commodity during the festive period, when demand typically peaks.
The move reflects growing concerns about price volatility in essential food commodities. Authorities have suggested that stricter enforcement against hoarding and better supply chain management are critical to stabilising onion markets and preventing future price shocks that impact household budgets across the country.