Govt starts buffer onion releases as festive demand nears

The government on Wednesday said onion availability is comfortable to meet domestic demand in the coming months and has begun calibrated releases from its buffer stock to contain seasonal price pressures.

The first Kanda Express carrying onions has left Nashik for New Delhi, while more than 15 trucks are scheduled to transport consignments to over 10 destinations. The government said onion disposal will use a hybrid logistics model involving railway rakes and road transport.

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Onion production in 2025-26 is estimated at 307.37 lakh tonnes (LMT), broadly in line with 307.67 LMT recorded in the previous year. The government expects robust production, buffer stocks, and market interventions to ensure adequate supplies in the coming months.

For 2026-27, the government had set a procurement target of 2 LMT of Rabi onion for the Price Stabilisation Fund. Procurement began on May 15 through NAFED and NCCF, with around 1.21 LMT procured so far.

The Central Warehousing Corporation has also been engaged for the first time as the storage agency for the PSF onion buffer.

The move comes ahead of the festive and wedding season, when onion demand typically rises. Retail sales at ₹35 per kg have been launched through NCCF and NAFED outlets and mobile vans, along with Safal and Kendriya Bhandar outlets in Delhi.

The Kanda Express initiative transported nearly 88,000 tonnes through 86 railway rakes to 16 cities in 2025-26, compared with around 12,000 tonnes through 14 rakes to five cities in 2024-25. Current consignments from Nashik are headed towards Delhi-NCR, while supplies are also being moved to Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu, and Amritsar.

The Department of Consumer Affairs monitors daily prices of 41 essential commodities across 579 centres. It said further releases would be calibrated according to market conditions, arrivals, and demand. Onion exports remained robust at around 3.82 LMT during April-June 2026, with Malaysia, Sri Lanka, the UAE, and Nepal among the major destinations.

As of August 26, the all-India average retail price of onion stood at ₹37.87 per kg, while tomato was ₹38.33 and potato ₹22.63 per kg. The government said tomato, potato, and chana dal prices were lower than a year earlier.