‘Onion availability is comfortable…’: Govt says no cause for concern, festive season demand will be met

‘Onion availability is comfortable…’: Govt says no cause for concern, festive season demand will be met

Besides Delhi-NCR, onion supplies are being moved to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.

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Govt clarifies that there's enough availability of onion to meet festive demandGovt clarifies that there's enough availability of onion to meet festive demand
Business Today Desk
  • Aug 27, 2026,
  • Updated Aug 27, 2026 8:42 AM IST

The government said there is sufficient availability of onions to meet the festive season demand. It has started calibrated releases from buffer stock to control retail prices, the Department of Consumer Affairs said in a statement.

"Onion availability is comfortable to meet domestic demand in the coming months," it said, adding, “Robust production, availability of buffer stocks and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures in the coming months.”

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"With the onset of the festive season, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali and the wedding season, onion prices typically witness a seasonal uptick owing to higher demand and supply-chain factors," the department further said. 

It said it is closely monitoring availability, arrivals and prices across states. Further measures will be taken if needed to protect consumers' and farmers' interests and to prevent unwarranted price increases, it added.

MUST READ | Govt starts buffer onion releases as festive demand nears

Onion production is estimated at 307.37 lakh tonnes in 2025-26, slightly lower than 307.67 lakh tonnes in the previous year. Robust production, buffer stocks and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures in the coming months. During April-June 2026, onion exports were about 3.82 lakh tonnes, with Malaysia, Sri Lanka, the UAE and Nepal as major destinations.

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The government has set a procurement target of 2 lakh tonnes of rabi onion for the Price Stabilisation Fund for 2026-27. Procurement began on May 15 through NAFED and NCCF, with around 1.21 lakh tonnes procured so far. The Central Warehousing Corporation has been engaged for the first time as the storage agency for the PSF onion buffer.

Retail sale of onions at ₹35 per kg has been launched through mobile vans and retail outlets of NCCF and NAFED, as well as through Safal and Kendriya Bhandar outlets in Delhi. Sales are being carried out through 90 outlets and 40 mobile vans of NCCF, 13 outlets and 50 mobile vans of NAFED, and about 100 Kendriya Bhandar outlets.

Meanwhile, the first Kanda Express carrying onions has left Nashik for Delhi-NCR in the current financial year. More than 15 trucks are scheduled to move consignments to over 10 destinations. Onion disposal will follow a hybrid logistics model involving railway rakes and road transport. In 2025-26, the initiative transported nearly 88,000 tonnes through 86 railway rakes to 16 cities, compared with around 12,000 tonnes through 14 rakes to five cities in 2024-25.

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DON'T MISS | Onion prices soaring: Centre to sell onions at ₹35/kg, sends Kanda Express to boost supply

Besides Delhi-NCR, onion supplies are being moved to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar. The department said the quantity, coverage and disposal channels for onion releases would be widened based on market conditions and price trends.

The all-India average retail price of onion was ₹46.74 per kg on Wednesday, up 35 per cent from a month ago and 63 per cent year-on-year. As of August 26, the all-India average retail price of onion stood at ₹37.87 per kg, while tomato was ₹38.33 per kg and potato ₹22.63 per kg. Tomato, potato and chana dal prices were lower than a year earlier. Prices of key pulses including tur, gram, masur, urad and moong, as well as essential vegetables such as tomato and potato, were currently stable and range-bound.

The government said there is sufficient availability of onions to meet the festive season demand. It has started calibrated releases from buffer stock to control retail prices, the Department of Consumer Affairs said in a statement.

"Onion availability is comfortable to meet domestic demand in the coming months," it said, adding, “Robust production, availability of buffer stocks and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures in the coming months.”

Advertisement

"With the onset of the festive season, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali and the wedding season, onion prices typically witness a seasonal uptick owing to higher demand and supply-chain factors," the department further said. 

It said it is closely monitoring availability, arrivals and prices across states. Further measures will be taken if needed to protect consumers' and farmers' interests and to prevent unwarranted price increases, it added.

MUST READ | Govt starts buffer onion releases as festive demand nears

Onion production is estimated at 307.37 lakh tonnes in 2025-26, slightly lower than 307.67 lakh tonnes in the previous year. Robust production, buffer stocks and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures in the coming months. During April-June 2026, onion exports were about 3.82 lakh tonnes, with Malaysia, Sri Lanka, the UAE and Nepal as major destinations.

Advertisement

The government has set a procurement target of 2 lakh tonnes of rabi onion for the Price Stabilisation Fund for 2026-27. Procurement began on May 15 through NAFED and NCCF, with around 1.21 lakh tonnes procured so far. The Central Warehousing Corporation has been engaged for the first time as the storage agency for the PSF onion buffer.

Retail sale of onions at ₹35 per kg has been launched through mobile vans and retail outlets of NCCF and NAFED, as well as through Safal and Kendriya Bhandar outlets in Delhi. Sales are being carried out through 90 outlets and 40 mobile vans of NCCF, 13 outlets and 50 mobile vans of NAFED, and about 100 Kendriya Bhandar outlets.

Meanwhile, the first Kanda Express carrying onions has left Nashik for Delhi-NCR in the current financial year. More than 15 trucks are scheduled to move consignments to over 10 destinations. Onion disposal will follow a hybrid logistics model involving railway rakes and road transport. In 2025-26, the initiative transported nearly 88,000 tonnes through 86 railway rakes to 16 cities, compared with around 12,000 tonnes through 14 rakes to five cities in 2024-25.

Advertisement

DON'T MISS | Onion prices soaring: Centre to sell onions at ₹35/kg, sends Kanda Express to boost supply

Besides Delhi-NCR, onion supplies are being moved to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar. The department said the quantity, coverage and disposal channels for onion releases would be widened based on market conditions and price trends.

The all-India average retail price of onion was ₹46.74 per kg on Wednesday, up 35 per cent from a month ago and 63 per cent year-on-year. As of August 26, the all-India average retail price of onion stood at ₹37.87 per kg, while tomato was ₹38.33 per kg and potato ₹22.63 per kg. Tomato, potato and chana dal prices were lower than a year earlier. Prices of key pulses including tur, gram, masur, urad and moong, as well as essential vegetables such as tomato and potato, were currently stable and range-bound.

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