The Tamil Nadu government will procure onion from Karnataka and Maharashtra.
Onion in Tamil Nadu would be supplied at Rs 55 per kilogram through the 42 Farm Fresh outlets across the state, giving the consumers relief up to Rs 15 per kilogram compared to the prices at private outlets, said government officials.
Chief Minister, Jayalalithaa, has ordered the setting up of a Rs 100 crore price stabilisation fund, in a bid to help the poor and middle classes hit by the price rise.
The government will procure onion from Karnataka and Maharashtra.
The price of onion has soared to Rs 80 a kg over the last few weeks, and is currently hovering around Rs 55 and Rs 70 in the state.
The public opinion remains divided.
Chennai based IT professional R Pravina's family has cut down their onion consumption by half, she told NDTV, "It's good for middle classes if they are selling at a cheaper price. Onion is an integral part of our food in south too".
Another resident, Gigy Jenson said, "We need more farm fresh outlets. There are just a few in Chennai and it's not worth it to spend so much on fuel to go to these outlets".
Many others felt that the government's move came too late, and the government should have intervened when the price sky had initially rocketed.
Kaveda Ravi, an entrepreneur however says, "The government should stay out of all these and focus on developing infrastructure. Already the government supplies low priced Idly, water, medicine etc".
Earlier in 2013, the government had imported onions from Andhra Pradesh, Karnataka, and Maharastra, to improve availability in the domestic market when the onion prices were high, according to the government.