Onion prices to reduce soon? Govt sells 4,000 tonnes of buffer stock across India, including Kerala

THE central government has sold nearly 4,000 tonnes of onions from its buffer stock across 17 cities during the first 10 days of a subsidised retail initiative intended to bring down sharply rising prices, according to Consumer Affairs Secretary Nidhi Khare on Sunday.

For 2026, the Centre has maintained a buffer stock of 1.21 lakh tonnes of onions through its agencies, NCCF and Nafed.

‘Distribution of buffer onions has brought some relief to consumers’

As part of efforts to stabilise retail prices, the agencies are moving onions in bulk from major producing states to consumption centres by trucks and a dedicated railway service called the “Kanda Express”. The onions are being retailed at a subsidised price of ₹35 per kg in selected cities where prices are particularly sensitive.

"Approximately 4,000 tonnes of buffer onion have been sold so far in 17 cities," Khare told PTI.

She added that bulk consignments had already been transported to Delhi and Chennai through the Kanda Express, while a third rake was being loaded for dispatch to Guwahati in the coming days.

"The distribution of buffer onions has brought some relief to consumers. Prices have fallen slightly," Khare said, adding that the quality of the government's buffer stock was comparable in size and quality to what private traders were selling.

She noted that the rabi onion crop, typically stored for release later in the year, had suffered some damage during harvesting due to untimely rains.

NCCF Managing Director Anice Joseph Chandra said the federation alone has sold 1,500 tonnes of buffer onion so far.

"So far, we have sold 1,500 tonnes of buffer onions in different cities across the country. The focus is on retail and selling at ₹35 per kg," she said.

Several state governments have shown interest in the scheme, she said, with NCCF tying up with a few states to sell through its stores, mobile vans, cooperative societies and other platforms identified by local administrations.

NCCF's retail intervention is currently underway in the Delhi-NCR region, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab, Odisha and a few other states. The nodal Central Warehousing Corporation (CWC) is handling the sorting, grading, packing and movement of buffer onion to these states.

According to Chandra, the government’s subsidised onion sales have resulted in prices declining by around ₹2-3 per kg.

Data from the Department of Consumer Affairs showed that the average retail price of onions across India was ₹50.79 per kg, compared with ₹48.5 per kg when the subsidised sales began on August 28.

Onion prices in Delhi, Chennai and other cities

As of September 5, onions were being sold at ₹58 per kg in Delhi, ₹53 per kg in Mumbai, ₹63 per kg in Chennai and ₹40 per kg in Ranchi. The average wholesale price was recorded at ₹42.79 per kg.

Officials said the prospects for the upcoming kharif onion crop were encouraging. Its expected arrival in markets from mid-October is likely to improve supplies and provide additional relief from high prices.