Onion wholesale prices fall 9% in 9 days, retail rates may ease: Govt

Onion prices may finally start easing after wholesale rates fell 9 per cent across mandis in the past nine days, offering some relief to consumers who have been paying sharply higher prices in recent weeks, PTI reported on Wednesday.

The All-India average retail price of onion stood at ₹53.92 per kg on Tuesday. This was 48 per cent higher than a month ago and 94 per cent above the price recorded a year earlier.

Consumer Affairs Secretary Nidhi Khare said the fall in wholesale prices is expected to bring down retail rates as well.

"There is no dearth in the availability of onions. Since the time that we started the retail intervention to make sure that onions reach consumers at ₹35 per kg, we have been able to reach about 48 cities in the country," Khare said.

"We have used a hybrid way, both transportation by retail rates as well as trucks," she added.

Khare was speaking to reporters on the sidelines of an event organised by industry body PHDCCI.

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Wholesale prices show signs of easing

Khare said the government has been closely tracking mandi prices as it works to contain the rise in onion prices.

She said the decline in wholesale rates should have a positive impact on retail prices, which are expected to moderate.

Onion inflation also rose sharply in August. According to the latest government data, inflation in onions increased to 48.27 per cent in August from 22.54 per cent in July.

Government selling onions at ₹35 per kg

The Centre started selling onions at ₹35 per kg last month, below prevailing market rates, through retail outlets of NCCF, NAFED and Kendriya Bhandar. The onions are also being sold through mobile vans as part of efforts to provide relief to consumers.

The government has also started a calibrated release of onion buffer stocks through a hybrid transportation model. This includes railway rakes, known as Kanda Express, along with road transport to improve availability and check seasonal price pressures.

The disposal of onions from the price stabilisation fund (PSF) buffer began on August 24 through NAFED and NCCF. The move has helped improve market availability and ease prices.

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The government maintained 1.21 lakh tonne of onion in its buffer stock for the current year.

Why onion prices rise around this time

Onion prices generally rise between August and September due to several factors, including festive demand, weather-related disruptions, supply chain movements and changes in demand patterns.

Despite the recent price rise, onion production stood at 307.37 lakh tonnes in 2025-26, only marginally lower than 307.67 lakh tonnes in the preceding year.