Govt's subsidised supply fails to stop India's onion tears
Rates staying high despite the release of buffer stocks shows the challenge of bringing prices down across markets, particularly when retail rates differ substantially between locations and sellers, trade anaylists say.
The onion, a staple food in India, continues to drive up household expenses, even after the government intervened with subsidized supplies from its buffer stock, according to news agency PTI. Despite the Centre supplying onions at a subsidized price of Rs 35 per kg in Delhi and over 50 other cities, retail prices in major cities remained stuck between Rs 53 and Rs 60 per kg on September 22.
The all-India average retail price of onion was recorded at Rs 54.2 per kg on that day. Prices varied significantly across the nation, with the highest recorded at Rs 100 per kg and the lowest at Rs 29 per kg. In Delhi, the lowest retail price among the metros was noted at Rs 53 per kg, followed by Mumbai at Rs 58 per kg, while Kolkata and Chennai reported the highest rates at Rs 60 per kg each.
Private trade data, however, suggested that consumers in some markets were paying more than the reported rates. Despite the government's efforts to increase supplies and curb rising prices, onion retail prices have remained firm. The government is releasing onion from its buffer stock at a subsidized rate of Rs 35 per kg in Delhi and more than 50 other cities nationwide.
The buffer stock, which stands at 1.21 lakh tonnes for 2026, is managed by the National Cooperative Consumers’ Federation (NCCF) and Nafed. These agencies transport onions from producing states to consumption centers via road and a dedicated railway service called the "Kanda Express". The logistics push aims to move stored stocks closer to major consumption markets and bolster supplies where retail prices are under pressure.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
