Govt releases onion buffer stocks to check seasonal price rise; retail price fixed at ₹35/kg

Ziraat Times Team Report

New Delhi, August 27: The Government has commenced calibrated and targeted release of onions from its buffer stock and will sell them at ₹35 per kg through NCCF, NAFED, Kendriya Bhandar and other retail outlets to ensure adequate availability and contain seasonal price pressures.

The intervention comes ahead of the festive and wedding season, when onion prices typically witness an uptick due to increased demand and supply-chain factors.

The Government said domestic onion availability remains comfortable, supported by estimated production of 307.37 lakh tonnes (LMT) in 2025-26, broadly comparable to 307.67 LMT recorded in the previous year.

For the 2026-27 Price Stabilization Fund (PSF) buffer, the Government has fixed a procurement target of 2 LMT of Rabi onions. Procurement began on May 15 through NAFED and NCCF, with around 1.21 LMT procured so far.

For the first time, the Central Warehousing Corporation (CWC) has been engaged as the storage agency for the PSF onion buffer during 2026-27 to strengthen storage management and operational efficiency.

Onions to be sold at ₹35 per kg

Retail sales at ₹35 per kg will be undertaken through mobile vans and outlets operated by NCCF and NAFED, along with Safal and Kendriya Bhandar outlets.

The initial retail network includes:

• NCCF: 9 outlets and 40 mobile vans

• NAFED: 13 outlets and 50 mobile vans

• Kendriya Bhandar: About 100 outlets

The Government said the quantity, geographical coverage and retail channels would be expanded depending on market conditions and price trends.

Kanda Express to move buffer stocks

The Government is also using the Kanda Express railway initiative to transport onions from producing regions to major consumption centres.

During 2024-25, 14 railway rakes transported nearly 12,000 tonnes of onions to five cities. This increased substantially in 2025-26, when 86 rakes moved around 88,000 tonnes to 16 cities.

In the current financial year, the first Kanda Express carrying onions has departed from Nashik for the Delhi-NCR region. Road transportation is simultaneously being used to supply major consumption centres including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.

The hybrid rail-and-road model is intended to enable faster movement of buffer stocks according to market requirements.

Onion exports remain strong

Despite the domestic price intervention, onion exports have remained robust. India exported approximately 3.82 LMT of onions during April-June 2026, with Malaysia, Sri Lanka, the UAE and Nepal among the major destinations.

The Government said the export volumes reflected comfortable domestic availability.

Prices monitored across 579 centres

The Department of Consumer Affairs monitors prices of 41 essential commodities, including onions, every day across 579 centres nationwide.

As of August 26, the all-India average monthly retail price of onions stood at ₹37.87 per kg, while tomato prices were ₹38.33 per kg and potato prices ₹22.63 per kg.

The Government said it would continue monitoring onion prices, arrivals, availability and demand conditions and would adjust the scale, coverage and channels of buffer-stock releases wherever necessary.

It said the measures were aimed at protecting consumers from unwarranted price increases while ensuring remunerative returns to farmers through a balanced price-stabilisation approach.