The Delhi Government will now sell onions at Rs30 per kg through Fair Price Shops (FPS) and mobile shops from Wednesday, as against the earlier rate of Rs40. The decision was taken in a Cabinet meeting on Wednesday chaired by Chief Minister Arvind Kejriwal. The Government's move comes after the onion prices were stabilized in the market.
"We want to bring down the price of onions more in the market and in view of this, government has decided to sell them at a subsidised rate— Rs30 per kg," Food and Supplies Minister Asim Ahmed Khan told reporters. There are 280 FPS across the city.
The AAP government has identified 280 FPS outlets in the city and is also selling onions through mobile shops where FPS is not close to residential locations.
Khan said by opening its sales channels directly to the citizens, the Government has achieved the desired purpose of "controlling and stabilising" onion prices in the retail market and also in mandis of Delhi. "We will continue to strictly monitor the price movement of onions from time to time and necessary interventions on our part will continue till the prices stabilise completely," he said.
However, there are some who feel that if the Government decides to give subsidy of Rs10 per kg, the financial implication of this subsidy would be around Rs 2.50 crore. Also, industry insiders said onion is being sold Rs13-15 per kg in Nasik. The cost of onion has already come down in the northern region. Interestingly, Khan failed to provide details of stock available of onion. In a related development, NAFED officials met lieutenant Governor Najeeb Jung and reportedly informed him that they are willing to supply onions to Delhi Government for Rs27 a kg.
NAFED had blamed the Government for the increasing prices. The federation had claimed that the Delhi Government responded to the three letters sent to it on the issue earlier, prices of the essential vegetable would have remained under control.