The Aam Aadmi Party Government in Delhi has been making claims of purchasing onions at Rs. 40 per Kg and selling at Rs. 30 per kg. Following an RTI appeal by National Agricultural Cooperative Marketing Federation of India Limited (NAFED), it has come to light that there is a huge difference between the actual procurement cost and the price at which the onions were sold to the Delhites.

Image Courtsey : http://goo.gl/LUsRa2

Image Courtsey : http://goo.gl/LUsRa2

The RTI replies state that onions were procured at a much cheaper price of Rs. 18 per kg and sold at Rs. 30 per kg. The RTI documents revealed that the Government had purchased 2511 metric tonnes through Small Farmers Agriculture Business Consortium (SFAC) at an average price of Rs. 18.57 which is inclusive of cess and other expenses from various markets of Nashik in Maharashtra and Indore in Madhya Pradesh. Also the documents from RTI reveal that it could sell 575.32 metric tonnes of onion within the period of August 10 and September 2, which means more than 4400 metric tonnes of onion were kept at stock. Onion prices in the capital aggravated to Rs. 80 per kg but could have been controlled to a large extent if the Government would have send rest of the onion in stock to the market.

However the Government has declared that it had made purchases at an average price of Rs. 32.86 per kg as the procurement cost and Rs. 7 per kg as the transportation cost and other local expenses. The Delhi Cabinet finally decided to subsidize the prices by Rs. 10 per kg and sold onions at Rs. 30 per kg.