Tamil Nadu government launches onion sales through farm fresh outlet at subsidised cost

In the wake of spiralling onion prices, the Tamil Nadu Government has intervened by launching sale of onions through its farm fresh outlets at a subsidised cost.

The State government will sell onions at Rs 30 and Rs 40 a kg, which will be less that half the price available in the Koyambedu wholesale market. In local vegetable markets in Chennai, the price of Nashik variety, the large sized and the most popular among consumers, had touched Rs 100.

The second best quality from Bellary is sold at around Rs 70 per kg, and the third from Tamil Nadu and Andhra Pradesh at around Rs 50 per kg, said sources in Koyambedu market. The shortage of onion is due to poor supply from Nashik and Bellary following heavy rain there in the last couple of months. On a normal day, around 100 truck loads of onions from Nashik arrive in Koyambedu market.

"However, the supply had dropped by more than half in the last few day, resulting in shortage," said sources in the market. 

The shortage of onion is likely to continue for the next few days as the Centre plans to import it from various countries, they said.