Chennai, Aug 30 (IANS) The Tamil Nadu cooperative sector is preparing to sell onions at subsidised prices through ration shops after a rise in retail rates placed pressure on household budgets across the state.
Onions, a staple used in kitchens, have become more expensive over the past few weeks. Large onions, which were available for about Rs 30 a kg at the end of last month, are now being sold at nearly Rs 60 a kg in many retail markets. Prices of small onions, or shallots, have risen steeply, climbing from around Rs 40-50 a kg last month to nearly Rs 70 a kg.
The increase has affected consumers already coping with higher prices of several essential vegetables.
With market rates continuing to remain firm, the cooperative sector has decided to intervene by procuring onions in bulk and supplying them through the public distribution system at prices substantially below prevailing retail levels.
As part of the initiative, the state has approached the National Agricultural Cooperative Marketing Federation of India, commonly known as NAFED, seeking an allocation of 70,000 kg of onions.
The request follows 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 will be distributed to ration shops across Tamil Nadu.
They are expected to be sold for between Rs 30 and Rs 40 per kg, providing consumers with relief of up to Rs 30 per kg compared to prices in the open market.
Officials said the first consignment would help assess demand before further quantities are sought. Details regarding the number of ration outlets covered, purchase limits for individual cardholders and the date on which sales will begin are expected to be announced after supplies reach the state.
The proposed intervention is intended to provide immediate relief to families and curb the impact of the sudden price surge.
Cooperative outlets and ration shops have previously been used by the government to sell essential commodities at controlled prices whenever supply shortages or seasonal fluctuations caused retail prices to rise sharply.
Authorities are expected to monitor onion prices and availability in wholesale and retail markets while the subsidised sales programme is rolled out.
–IANS
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