In a big move to control onion prices and make the food more affordable, the Indian government has started retail onion sales at just Rs 24 per kilogram in Delhi, Mumbai, and Ahmedabad. Union Minister Pralhad Joshi officially launched this initiative on Thursday, using outlets and mobile vans operated by organizations like NCCF, NAFED, and Kendriya Bhandar. The government also partners with other distribution channels to ensure affordable onions reach consumers.
This step is part of India’s effort to keep essential goods affordable for everyone. The government plans to expand these sales across the country, depending on how onion prices change. To keep a close eye on prices, officials are tracking daily rates for 38 key commodities from 574 markets nationwide. This data helps decide when and how much onion to release from stockpiles.
The government maintains a strategic onion buffer—large stockpiles stored to stabilize prices during shortages or price spikes. This year, India’s onion production has increased significantly, with an estimated 307.71 lakh tonnes, about 27% more than last year. Despite higher supplies, exports are steady, with over 1 lakh tonnes shipped in July and August 2025.
To support farmers and keep prices stable, the government purchased 3 lakh tonnes of onions from farmers’ cooperatives and producers from key onion-growing states like Maharashtra, Gujarat, and Madhya Pradesh. Payments to farmers are made directly into their bank accounts linked with Aadhaar, ensuring transparency and quick transactions.
India’s onion procurement process now uses advanced technology to monitor every step—from farm collection to storage and sale. Farmers’ land records are verified online through the Maharashtra government portal, ensuring genuine sourcing. Regular inspections by government officials help maintain the quality and quantity of stored onions.
Prime Minister Narendra Modi’s government focuses strongly on controlling food inflation, which is the rise in food prices. Thanks to targeted interventions like this, India’s retail inflation in July 2025 hit a nearly eight-year low of 1.55%. Keeping onion prices stable is a key part of this strategy, helping millions of families save on daily essentials.
