Delhi government to bring down prices of onions to Rs 30 per kg

NEW DELHI: The state government has decided to bring down the price of onions from Rs 40 to Rs 30 per kg at 280 fair price shops and on mobile vans selling products in residential locations which don't have outlets nearby. This is being done by introducing a subsidy as part of market intervention to further bring down the prices of onions. Food and supplies minister Asim Ahmed Khan said that by selling directly to people, the government has achieved the "desired purpose of controll ing and stabilizing onion prices" in the retail mar ket and also in mandis. " We will continue to strictly monitor the issue and necessary interventions will be undertaken till prices stabilize," he said.

The government claimed that onion prices fell after an announcement was made by them last week that onions would be sold at Rs 40 per kg. The results were visible in open retail markets and it also led to the largest retailer, Safal, lowering the prices.

Officials said that the government's decision to sell onions at Rs 30 procured and stored through Small Farmers Agri Business Consortium (SFAC) at Nasik will lead to a further reduction in prices.Though the cost of procurement, storage, transportation and delivery of onions is higher, the government has decided to bear it as it feels that the "public should not suffer due to fluctuation in prices of essential commodities."