The Indian government has provided assurances that there is sufficient onion availability to meet domestic demand during the upcoming festive season. Officials stated that robust production, strategic buffer stocks, and proactive market interventions are in place to ensure adequate supplies and moderate seasonal price pressures.
Government Actions to Stabilize Onion Prices
To combat the typical seasonal uptick in onion prices driven by higher demand during festivals like Onam, Ganesh Chaturthi, Durga Puja, Dussehra, and Diwali, the Department of Consumer Affairs has initiated calibrated releases from its buffer stock. These interventions aim to stabilize retail prices nationwide.
The government is closely monitoring onion availability, market arrivals, and price trends across all states. Further measures will be taken as needed to protect consumer and farmer interests and prevent unwarranted price increases.
Production and Buffer Stock Management
Onion production for 2025-26 is estimated at 307.37 lakh tonnes, a figure deemed comfortable despite being slightly lower than the previous year's 307.67 lakh tonnes. The government has set a procurement target of 2 lakh tonnes of rabi onion for the Price Stabilisation Fund (PSF) for the 2026-27 season. Procurement commenced on May 15 through NAFED and NCCF, with approximately 1.21 lakh tonnes already secured.
For the first time, the Central Warehousing Corporation has been engaged to assist with the storage of the PSF onion buffer, enhancing logistics capabilities.
Retail Sales and Distribution Efforts
To make onions more accessible and affordable, retail sales have been launched at ₹35 per kg in Delhi. This initiative utilizes mobile vans and retail outlets operated by NCCF and NAFED, alongside Safal and Kendriya Bhandar outlets. Currently, approximately 90 NCCF outlets and 40 mobile vans, 13 NAFED outlets and 50 mobile vans, and around 100 Kendriya Bhandar outlets are facilitating these sales.
Furthermore, the "Kanda Express" — a railway initiative for onion transport — has begun its operations for the current financial year, with the first consignment departing from Nashik to Delhi-NCR. More than 15 trucks are also scheduled to transport onions to over ten destinations, employing a hybrid logistics model combining railway rakes and road transport. In 2025-26, this initiative successfully moved nearly 88,000 tonnes of onions to 16 cities.
Beyond Delhi-NCR, onion supplies are being actively moved to major cities including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu, and Amritsar. The quantity, coverage, and disposal channels for these releases will be expanded based on prevailing market conditions and price trends.
Recent Price Overview
Recent data indicates that the all-India average retail price of onion was ₹46.74 per kg on Wednesday, marking a 35 percent increase from the previous month and a 63 percent rise year-on-year. As of August 26, the average retail price stood at ₹37.87 per kg. In comparison, prices for other essential vegetables like tomato and potato, and key pulses, were reported as stable and range-bound.