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[BUSINESS] · India · 2 sources

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Tamil Nadu launches subsidized onion sales to curb price rises

The Tamil Nadu government has launched a subsidized onion sale program to combat rising market prices. Starting Thursday, September 3, onions will be sold at Rs 35 per kg through 8,739 urban ration shops.

In the first phase, the initiative aims to support approximately 80 lakh family cardholders, with each family eligible for one kg of onions. To facilitate this, the state has procured 1,000 metric tonnes of onions via NAFED and the National Cooperative Consumers’ Federation. This move follows reports of open market prices reaching between Rs 56 and Rs 60 per kg, driven by adverse weather, increased transport costs, and reduced supply from Maharashtra and Madhya Pradesh.

The program follows political pressure regarding inflation. DMK leader Udhayanidhi Stalin highlighted the rising costs of essential commodities, noting that onion prices had increased significantly since May, and called for lasting solutions to address the public's economic struggles.

Entities

NAFED · National Cooperative Consumers’ Federation · P Venkatraman · Tamil Nadu Government · Udhayanidhi Stalin