The Tamil Nadu government is planning to sell onions at subsidised rates through ration shops across the state in a bid to provide relief to consumers facing a sharp increase in prices.
The move comes as onion prices have risen significantly in recent weeks, adding to the financial burden on households. The price of large onions, which stood at around Rs 30 per kg at the end of July, has increased to nearly Rs 60 per kg in several retail markets. Small onions, or shallots, have also witnessed a steep rise, with prices climbing from around Rs 40-50 per kg to nearly Rs 70.
To contain the impact of the price rise, the cooperative sector plans to procure onions in bulk and make them available to consumers through the public distribution system at rates considerably lower than market prices.
The state government has approached the National Agricultural Cooperative Marketing Federation of India (NAFED), seeking 70,000 kg of onions for the proposed initiative. The request comes amid the Centre's efforts to make onions available to consumers at affordable rates through retail outlets.
Once the consignment arrives, the onions will be supplied to ration shops across Tamil Nadu. The subsidised price is expected to remain in the range of Rs 30 to Rs 40 per kg, potentially offering consumers savings of up to Rs 30 per kg compared with prevailing market prices.
Officials said the initial quantity would also help the authorities gauge consumer demand and determine whether additional supplies are required.
The government is expected to announce details such as the number of ration shops covered, the purchase limit for each ration cardholder and the start date of sales after the consignment reaches the state.
Authorities will continue to monitor wholesale and retail onion prices as the scheme is implemented. The government has previously used cooperative outlets and ration shops to provide essential commodities at controlled prices during periods of supply disruptions and seasonal price fluctuations.
The proposed measure is aimed at providing immediate relief to consumers while helping cushion households from the impact of the recent surge in onion prices.