Onion prices still make eyes water despite Centre's Rs 35/kg buffer sale
In a move to curb soaring onion prices, the government is implementing subsidized sales, dispersing around four thousand tonnes of onions to seventeen cities. With fresh kharif onion arrivals anticipated from mid-October, the supply situation is set to improve, although the recent rabi crop suffered from unexpected rains, complicating storage. This initiative aims to alleviate the financial…
The Centre has opened its onion reserves to curb prices, but the move has yet to lower the national average. Despite subsidies, the average all-India retail price jumped to Rs 50.79 per kg from Rs 48.5 per kg after the intervention began on August 28. Over 4,000 tonnes of buffer onions have been sold in 17 cities within the first ten days, according to Department of Consumer Affairs data.
Prices fluctuated across major cities on September 5, with Delhi at Rs 58 per kg, Mumbai at Rs 53 per kg, Chennai at Rs 63 per kg and Ranchi at Rs 40 per kg. The wholesale price stood at Rs 42.79 per kg. The government has released onion from its 1.21 lakh tonnes buffer stock for 2026 through the National Consumer Cooperative Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (Nafed).
Agencies are moving onions from producing states to consuming centres via trucks and a dedicated railway rake named Kanda Express. The onions are being sold at Rs 35 per kg in select price-sensitive cities. Around 4,000 tonnes of buffer onions have been sold across these cities, revealed consumer affairs secretary Nidhi Khare. The government has already dispatched bulk consignments to Delhi and Chennai via Kanda Express, with a third rake set for dispatch to Guwahati soon.
The distribution of buffer onions has provided some relief to consumers, with prices falling slightly, she added. NCCF has sold 1,500 tonnes of buffer onions in various cities, according to its Managing Director Anice Joseph Chandra. The focus is on retail, with onions sold at Rs 35 per kg. Several state governments have shown interest in participating in the scheme.
The Central Warehousing Corporation (CWC), the nodal agency, is managing sorting, grading, packing and transportation of buffer stock. The rabi onion crop, generally stored for later release, faced damage due to untimely rains during harvesting. Officials are optimistic about the new kharif crop, which is expected to begin arriving in markets from mid-October, potentially easing supply pressure and further reducing prices.
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