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Subsidised onion sale to end from tomorrow with fall in prices

The government today decided to end the subsidised sale of the kitchen staple from tomorrow in new Delhi but it will continue to monitor the situation to prevent the recurrence of the crisis.

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With a sharp fall in onion prices in the retail market to Rs30 per kg, the government today decided to end the subsidised sale of the kitchen staple from tomorrow in new Delhi but it will continue to monitor the situation to prevent the recurrence of the crisis.

A high-level meeting, which was convened by agriculture minister Sharad Pawar, also decided to discontinue the 30% subsidy that the Centre was offering to farm cooperatives for subsidised onion sale from tomorrow, official sources said.

Food minister KV Thomas, Delhi chief minister Sheila Dikshit and senior officials of agriculture, food and consumer affairs ministry participated in the meeting.

"Since onion prices have started coming down in Delhi and other cities, it was thought that the subsidised sale of the vegetable was not needed from tomorrow," a source said.

Onion prices have declined to Rs30 per kg from a peak of Rs70-85 per kg as on December 20-21.

"We reviewed the market scenario of onions and other vegetables. The meeting expressed pleasure over easing of prices of onions in the national capital," Dikshit told reporters.

The state government would discuss steps to keep a tab over the situation and take measures to avoid recurrence of such situation in future, she added.

In order to provide relief to the consumers, the Centre had decided to sell onions at cheaper rates in Delhi through outlets of Mother Dairy, Nafed, National Consumer Co-operative Federation (NCCF) and Kendriya Bhandar.

It also launched a scheme, under which 30% subsidy was being provided to these agencies to cover the losses, if any.

The subsidy scheme is valid till today and the high-level meeting decided not to extend the scheme further, sources added.

The meeting also pondered over possibility of creating fruits and vegetables hubs around prominent cities to feed the urban population and also to avert crisis situation like the present one, sources said.

Meanwhile, prominent agri-cooperative Nafed today cut the prices of onions to Rs20/kg on its last day of subsidised sale.

The subsidised sale will end from tomorrow, although if there is any left out stock in Nafed godowns, the same would be cleared in the next 1-2 days at Rs20 per kg, Nafed Managing Director Sanjeev Chopra told PTI.

Wholesale price of onions have come down to Rs5-17 per kg in Azadpur wholesale market in Delhi today.

The wholesale price of the commodity was recorded at Rs17/kg in main producing region Lasalgaon in Nashik district of Maharashtra and Rs15/kg in Pimpalgaon in the same district.

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