Centre starts onion sale in capital at Rs 35/kg, 44% below market price

On Thursday, the Indian government commenced the retail sale of onions from its buffer stock in the national capital, offering consumers a 44% discount off the current market price. The Centre reduced the onion price to Rs 35 per kg, down from the prevailing market rate of Rs 62 per kg, as part of its efforts to provide relief to consumers and curb prices before the festive season.

Consumer Affairs Secretary Nidhi Khare explained that the recent surge in onion prices was due to black marketing, hoarding, and profiteering. She assured that India has sufficient supplies to satisfy domestic demand during the festive season. The government is not contemplating a ban on onion exports, as there is no supply issue.

Khare flagged off several small trucks carrying onions, signaling the start of retail sales from the government's buffer stock in the capital. The onions will be distributed through three agencies - Nafed, NCCF, and Kendriya Bhandar, with Mother Dairy also selling onions via its Safal stores. To expedite supplies to Delhi, the government is utilizing dedicated railway rakes, known as the Kanda Express.

The first such rake, carrying 800 tonnes of onions, has departed from Nashik and is anticipated to arrive in Delhi on Thursday.

The Department of Consumer Affairs reported on Wednesday that onion availability is ample to meet domestic demand in the coming months. Onion production for the 2025-26 season is projected at 307.37 lakh tonnes, slightly lower than the previous year's 307.67 lakh tonnes. The government has procured approximately 1.21 lakh tonnes of onions for its buffer stock, with the Central Warehousing Corporation serving as the storage agency for the onion buffer during 2026-27.

The department is closely monitoring onion prices, arrivals, and availability across states and will implement additional measures if necessary to ensure adequate supplies and prevent unwarranted price hikes. It is well aware that onion prices typically increase during the festive season due to higher demand and supply-chain factors.

With the beginning of festivities, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali, and wedding season, onion prices often experience a seasonal surge due to heightened demand and supply-chain challenges. To counteract these trends, the government has implemented a measured and targeted release of onions from its buffer stock to maintain adequate supplies and keep prices under control.