Union Minister Launches Vans Selling Subsidized Onions at Rs 24 per kg
Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Shri Pralhad Joshi, has initiated the retail sale of onions at a price of Rs. 24 per kilogram. This launch took place today with the flagging off of mobile vans from the National Cooperative Consumers’ Federation (NCCF), National Agricultural Cooperative Marketing Federation of India (NAFED), and Kendriya Bhandar. The move aims to ensure that onions are available to consumers at reasonable prices while addressing food inflation concerns.
Government’s Strategy to Control Food Inflation
Shri Joshi emphasized that controlling food inflation is a top priority for the Government of India. Recent interventions aimed at stabilizing prices have contributed to a significant reduction in the inflation rate, which stood at 1.55% in July 2025—the lowest in nearly eight years. The targeted release of onions from government reserves is part of a broader strategy to manage food prices effectively. The government is closely monitoring the prices of 38 essential commodities, including onions, across 574 centers nationwide. This data is crucial for determining how much onion to release from the buffer and where to direct these supplies.
Implementation of Targeted Disposal
The targeted disposal of onions has commenced in major cities, including Delhi, Mumbai, and Ahmedabad. The sale will be conducted through various channels, including mobile vans and stationary outlets operated by NCCF, NAFED, and Kendriya Bhandar. The government plans to expand this initiative based on the prevailing trends in onion prices. In total, the government has procured 3 lakh tonnes of onions for price stabilization, sourcing them from farmers in key onion-producing states like Maharashtra, Gujarat, and Madhya Pradesh. Payments to farmers are being made directly to their bank accounts, ensuring transparency and efficiency in the procurement process.
Technological Innovations in Procurement and Sales
This year, the government has adopted an integrated system for monitoring the procurement, storage, and distribution of onions, utilizing technology to track operations at every stage. To enhance transparency, the authenticity of farmers and their land records has been verified through the e-Mahabhumi portal, an official platform of the Maharashtra government. Regular inspections by officials from the Departments of Consumer Affairs and Food & Public Distribution ensure that the quality and quantity of onions in storage meet required standards.
Additionally, NAFED is implementing a new digital billing application to streamline sales operations. This user-friendly application will be installed on mobile devices used by van operators, allowing for beneficiary identity verification and automated sales processes. The application will also send SMS notifications to customers for each transaction, enhancing communication and feedback mechanisms.
Retail Channels and Future Plans
The retail disposal of onions is a key focus for managing prices effectively across the country. As of today, various agencies, including NCCF, NAFED, and Kendriya Bhandar, have deployed multiple mobile vans and stationary outlets in Delhi-NCR, Mumbai, and Ahmedabad. The initiative aims to ensure that onions remain accessible to consumers at affordable prices.
The government is committed to expanding its coverage and diversifying its distribution channels based on market trends. With the expected increase in onion production this year, estimated at 307.71 lakh tonnes—27% higher than the previous year—the government is optimistic about stabilizing prices and ensuring that consumers have access to this essential vegetable.
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