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Govt releases buffer onions to curb seasonal price pressures
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Friday, 28 August, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Government has commenced a calibrated and targeted release of onions from its buffer stock to ensure adequate availability and moderate seasonal price pressures in the coming months. The intervention will use a hybrid transportation model involving railway rakes and road transport to move supplies to major consumption centres based on prevailing market conditions and price trends.
India's onion availability remains comfortable, supported by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26, broadly in line with the previous year's output of 307.67 LMT. Robust production, buffer stocks and proactive market interventions are expected to help maintain adequate supplies and contain seasonal price pressures.
For 2026-27, the Government has set a procurement target of 2 LMT of rabi onions for the Price Stabilisation Fund (PSF) buffer. Procurement began on May 15, 2026, 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, aimed at strengthening storage management and operational efficiency.
The release comes ahead of the festive and wedding season, when onion prices typically witness an uptick due to increased demand and supply-chain factors. The scale, coverage and channels for the release of buffer onions will be further expanded depending on market conditions and price trends.
Under the retail intervention, onions will be sold at ?35 per kg through mobile vans and retail outlets operated by NCCF and NAFED, as well as through Safal and Kendriya Bhandar outlets. NCCF will undertake sales through nine outlets and 40 mobile vans, while NAFED will operate through 13 outlets and 50 mobile vans. Kendriya Bhandar will facilitate sales through around 100 outlets. The initiative is aimed at ensuring that onions remain available to consumers at affordable prices.
The Government is also strengthening the movement of buffer onions through the Kanda Express initiative. During 2024-25, 14 railway rakes transported nearly 12,000 MT of buffer onions to five cities. Operations expanded significantly in 2025-26, with 86 railway rakes carrying around 88,000 MT of onions to 16 cities across the country.
In the current financial year, onion transportation through the Kanda Express has commenced from Nashik to New Delhi, with the first consignment expected to reach the Delhi-NCR region. At the same time, supplies are being moved by road to major consumption centres, including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.
Onion exports have also remained robust, with shipments during April-June 2026 reaching approximately 3.82 LMT. Major export destinations included Malaysia, Sri Lanka, the UAE and Nepal, indicating comfortable domestic availability.
The Department of Consumer Affairs is monitoring daily prices of 41 essential commodities, including onions, across 579 centres nationwide. Price trends, market arrivals and demand conditions are being used to determine the scale and destinations of buffer stock releases.
As of August 26, 2026, the all-India average retail price of onions stood at ?37.87 per kg. Average retail prices of other key commodities included Rs 38.33 per kg for tomato, Rs 22.63 per kg for potato, Rs 86.71 per kg for chana dal, Rs 40.48 per kg for atta and Rs 123.30 per kg for tur dal. Milk was retailing at an average of Rs 60.82 per litre. The Government noted that prices of tomato, potato and chana dal were lower than a year ago, while prices of key pulses and essential vegetables remained stable and range-bound.
The Government said it will continue to closely monitor onion prices, arrivals, availability and demand conditions and calibrate further interventions as required to ensure adequate supplies, protect consumer interests and moderate unwarranted price increases while ensuring remunerative returns to farmers.
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