T.N. to Sell Onions at ₹35/kg via Fair Price Shops to Ease Price Burden
The Tamil Nadu government on Tuesday announced a series of measures to control the rising prices of onions, a staple in Indian kitchens. Minister for Food and Civil Supplies P. Venkataramanan informed the State Assembly that the government will procure 1,000 metric tonnes of onions in the first phase and distribute them through fair price shops in urban areas at a subsidised rate of ₹35 per kilogram.
The decision comes in the wake of a sharp increase in onion prices, which are currently retailing at ₹56 to ₹60 per kilogram in the open market. The Minister attributed the price surge to supply shortages caused by unfavourable weather conditions in major onion-producing states such as Maharashtra and Madhya Pradesh.
Explaining the rollout plan, Mr. Venkataramanan said the procurement will be done through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF). The onions will be made available to ration card holders through cooperative wholesale godowns, Amudham outlets, and fair price shops located in urban areas. Each ration card holder will be eligible to purchase one kilogram of onion at the subsidised rate.
In the first phase, the distribution will cover approximately 80 lakh families through 8,730 fair price shops across urban areas. The Minister assured that additional quantities will be procured and supplied based on demand.
The Minister also highlighted the government's ongoing efforts to monitor prices of essential commodities. He noted that the Price Monitoring Committee, which met on July 6, has decided to convene once every three months. Prices are being tracked on a daily, weekly, and monthly basis to ensure timely intervention.
The move is expected to provide significant relief to urban consumers, who have been bearing the brunt of soaring onion prices. The government’s proactive approach aims to stabilise the market while ensuring that essential commodities remain accessible to all sections of society.
The announcement has been welcomed by consumer groups, though some have urged the government to extend the scheme to rural areas as well. Officials indicated that the current focus on urban centres is due to the higher concentration of ration card holders and logistical considerations. The government has reiterated its commitment to revisiting the scope of the programme based on feedback and demand.
