Government starts retail sale of onions at Rs 35 per kg

On Thursday, the Indian government commenced the retail sale of onions at a fixed price of Rs 35 per kilogram, utilizing buffer stock reserves. The onions will be distributed via mobile vans and the outlets of two cooperative federations: the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Consumer Cooperative Federation of India Ltd (NCCF). Nidhi Khare, the Consumer Affairs Secretary, inaugurated the mobile vans of NCCF and NAFED at Krishi Bhawan.

Khare highlighted that there is ample production and availability of onions, but the government has implemented proactive measures to curb price volatility due to expected demand during festive seasons. Retail sales commenced on August 27, through 9 NCCF stores, 13 NAFED stores, 100 Kendriya Bhandar stores, 40 NCCF mobile vans, and 39 NAFED mobile vans.

The intervention aims to enhance consumer access, temper price pressures, and ensure sufficient onion supplies in the market. The Kanda Express initiative has bolstered the government's logistical efforts by transporting buffer onions from producing regions to major urban centers. In the 2024-25 fiscal year, 12,000 metric tonnes of buffer onions were moved via 14 railway rakes to five cities. This number surged to 88,000 metric tonnes transported by 86 rakes to 16 cities during the 2025-26 fiscal year.

For the current initiative, onions are being transported via both rail and road networks. The Central Warehousing Corporation (CWC) has been enlisted to aid in the scientific storage and efficient distribution of buffer onions.