New Delhi, Sep 14 (IANS): The government on Saturday announced that its retail sale initiative of onions at a subsidised rate has resulted in a significant drop in the price of the staple food item in major cities.

The Centre launched the retail sale of onion at the subsidised rate of Rs 35 per kg with the flagging off of mobile vans on September 5.

From September 5 till September 13, the prices of onions dropped in Delhi from Rs 60 to Rs 55; in Mumbai from Rs 61 to Rs 56 and from Rs 65 to Rs 58 in Chennai, according to the Ministry of Consumer Affairs.

The retail disposal started through outlets and mobile vans of the National Cooperative Consumers' Federation Of India Ltd (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) in major consumption hubs - Delhi and Mumbai - and was subsequently extended to other important locations like Chennai, Kolkata, Patna, Ranchi, Bhubaneswar, and Guwahati etc.

In response to growing demand and to further ease the prices of onion, the government decided to enhance the quantity and distribution channels.

"Besides expanding the retail sale to e-commerce platforms, outlets of Kendriya Bhandar and SAFAL, bulk sales strategies are also being adopted to ensure availability of onions to the consumers at affordable prices," the ministry announced.

Meanwhile, the government has removed minimum export price (MEP) thresholds for onion and basmati rice to boost exports and increase farmers’ income.

The decision also includes a reduction in the export duty on onion from 40 per cent to 20 per cent, effective September 14. India exported 2.6 lakh tonnes of onions till July of this fiscal year. The country had exported 16.07 lakh tonnes of onions in the last fiscal.

The ministry said that with enhanced retail and bulk sale strategies, along with the available buffer stock of 4.7 lakh metric tonnes (LMT) of onion and increased kharif sowing area as compared to the previous year, onion prices will remain under control in coming months.

According to the Ministry of Consumer Affairs, the wholesale disposal has already commenced in major cities such as Delhi, Mumbai, and Chennai and will be extended to Hyderabad, Bengaluru and Kolkata in the coming days, and eventually to all state capitals.

The Centre said that the wholesale disposal, this time, is happening through both road transport as well as the railway network. This initiative, besides bringing logistical efficiency, will also reduce post-harvest losses.