Onion Price in Tamil Nadu: Government to Sell Onions at Subsidised Rates Through Ration Shops

The Tamil Nadu cooperative sector is preparing to sell onions at subsidised prices through ration shops following a sharp rise in retail onion prices across the state. The move is aimed at providing relief to households facing higher expenses on essential vegetables.

Onion Prices Rise Across Tamil Nadu

Onions, a staple ingredient in kitchens, have become significantly more expensive over the past few weeks. Large onions, which were available for around ₹30 per kg at the end of last month, are now being sold for nearly ₹60 per kg in several retail markets.

The price of small onions, or shallots, has also increased sharply. Small onion prices have risen from around ₹40–₹50 per kg last month to nearly ₹70 per kg.

The increase in onion prices in Tamil Nadu has added to the financial pressure on consumers already dealing with higher prices of several essential vegetables.

Onions to Be Sold Through Ration Shops

With market prices continuing to remain high, the cooperative sector has decided to intervene by procuring onions in bulk and distributing them through the public distribution system (PDS) at prices below prevailing retail rates.

As part of the initiative, Tamil Nadu has approached the National Agricultural Cooperative Marketing Federation of India (NAFED) seeking an allocation of 70,000 kg of onions.

The request comes after the Union government’s move to make onions available to consumers at affordable prices through retail channels.

Once the consignment is received from the Central agency, the onions are expected to be distributed through ration shops across Tamil Nadu.

Subsidised Onion Price Expected at ₹30–₹40 Per Kg

The onions are expected to be sold at ₹30 to ₹40 per kg through the subsidised sales programme. This could provide consumers with savings of up to ₹30 per kg compared with prevailing open-market prices.

The initiative is expected to benefit households that are facing the impact of rising onion prices and vegetable prices in Tamil Nadu.

Details of Ration Shop Onion Sales Awaited

Officials said the first consignment of onions will help authorities assess consumer demand before additional quantities are procured.

Further details, including the number of ration shops that will sell onions, purchase limits for individual ration cardholders and the date on which sales will begin, are expected to be announced after the supplies reach Tamil Nadu.

Government to Monitor Onion Prices

The proposed intervention is aimed at providing immediate relief to consumers and reducing the impact of the sudden rise in onion prices.

Cooperative outlets and ration shops have previously been used by the government to sell essential commodities at controlled prices when supply shortages or seasonal fluctuations lead to sharp increases in retail prices.

Authorities are expected to continue monitoring onion prices, wholesale rates and retail availability as the subsidised onion sales programme is rolled out across Tamil Nadu.