Centre releases more onion from buffer to ease prices
Union government reduces stock holding limit for dealers to ensure adequate availability of sugar in domestic market and to prevent hoarding and speculative trading
As the prices of onion and sugar remained elevated for the second week before the festive season, the Union Consumer Affairs Ministry announced on Tuesday (September 1, 2026) a "calibrated release" of onion buffer stocks using railway and road transport to key consumption centers. The objective was to ensure sufficient availability and moderate seasonal price pressures.
In an effort to prevent hoarding and speculative trading for sugar, the government lowered the stock holding limit for dealers from 4,000 quintals to 2,000 quintals, effective from September 15 to November 30. This measure aimed to maintain adequate sugar supply in the domestic market and promote reasonable prices.
Two "Kanda (onion) Express" consignments carrying a combined total of 1,290 metric tonnes (MT) of onions were dispatched from Nashik, Maharashtra to Delhi. Out of the first consignment, 140 MT were distributed in Varanasi, Lucknow, Chandigarh, and Amritsar. On August 31, the second rake with 840 MT reached Chennai. The Tamil Nadu Government intends to disperse these onions through the Public Distribution System based on individual cardholder requirements, likely across various districts of Tamil Nadu.
Additionally, approximately 1,000 MT of onions were being transported via road to major consumption centers. The Union government reported that retail intervention had expanded significantly across 19 cities, with over 30 trucks dispatched to ensure widespread availability.
The government's release of onions from buffer stocks contributed to improved market availability and eased prices. For sugar, the amended stocking provisions required dealers not to hold any stock for more than 30 days from the receipt date. Dealers were instructed not to keep sugar in stock at any time or location across the country in excess of 2,000 quintals, with the exception of Kolkata and its extended metropolitan areas, where the limit remained at 4,000 quintals.
This measure aimed to curb hoarding, discourage speculative trading, and maintain continuous sugar availability at reasonable prices.
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