As onion prices rise, Centre readies retail intervention in Delhi-NCR

New Delhi: The Indian government is set to subsidize the price of onions in Delhi-NCR starting this week, aiming to curb the sharp rise in retail prices. Officials revealed that mobile vans will be deployed to sell onions at a reduced rate of Rs 35 per kg across various locations in the region in the coming days. This move follows the successful implementation of similar interventions in previous years, with the government's initial focus on offloading surplus onions from major mandis to bring down wholesale prices, which are expected to subsequently benefit consumers in Delhi-NCR.

The government plans to expand retail market interventions to multiple cities in Delhi-NCR through mobile vans, ensuring onions are available at the subsidized rate, according to a consumer affairs department official. In recent years, onion prices in Delhi have been significantly higher at Rs 55 per kg compared to the current subsidized price of Rs 35 per kilo.

The government's decision is based on the fact that onion availability is currently adequate to meet domestic demand, supported by an estimated production of 307 lakh tonnes in 2025-26, which is in line with the previous year's production of 308 lakh tonnes. Moreover, buffer stocks are available for calibrated market intervention to regulate prices if needed.

Historically, onion prices surge in August and September due to factors such as the festive season, weather conditions, supply-chain movements, and demand conditions. The government's move to intervene in the onion market comes as a response to the escalating retail prices, which have been a cause for concern for many consumers in the region.

With the successful track record of previous interventions and ample onion production, the government is confident that its actions will help stabilize onion prices and provide relief to consumers in Delhi-NCR.