Onion prices: Centre begins targeted buffer stock release; retail sale at ₹35/kg

New Delhi: With onion prices expected to come under seasonal pressure during the upcoming festive and wedding season, the Centre has begun a calibrated release of buffer stocks to ensure adequate availability and check sharp price increases.

The government said onion supplies remain comfortable, supported by estimated production of 307.37 lakh tonnes (LMT) in 2025-26, almost at par with the previous year’s 307.67 LMT. Around 1.21 LMT of onions have already been procured for the Price Stabilization Fund (PSF) buffer against the 2026-27 target of 2 LMT.

The first Kanda Express, carrying onions from Nashik to New Delhi, has also commenced operations. The Centre is using a hybrid logistics model involving railway rakes and road transport to move buffer stocks to major consumption centres depending on market conditions.

Onions will be sold to consumers at ₹35 per kg through NCCF and NAFED outlets and mobile vans, besides Safal and Kendriya Bhandar outlets.

Under the current arrangement, NCCF will operate nine outlets and 40 mobile vans, while NAFED will operate 13 outlets and 50 mobile vans. Kendriya Bhandar will make onions available through around 100 outlets.

The government said the Kanda Express initiative has significantly expanded onion transportation by rail. While 14 railway rakes transported nearly 12,000 MT to five cities in 2024-25, the number increased to 86 rakes carrying around 88,000 MT to 16 cities in 2025-26.

Besides Delhi, buffer onions are being transported by road to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.

The Centre said onion prices generally witness seasonal pressure during Onam, Ganesh Chaturthi, Durga Puja, Dussehra and Diwali, as well as during the wedding season.

Meanwhile, onion exports remained strong, with around 3.82 LMT exported between April and June 2026, mainly to Malaysia, Sri Lanka, the UAE and Nepal.

The Department of Consumer Affairs is monitoring prices of 41 essential commodities, including onions, across 579 centres nationwide. The government said further buffer stock releases would be undertaken if required to maintain supplies and prevent unwarranted price rises.