Govt Unleashes Onion Buffer Stock to Curb Soaring Prices

To combat a significant rise in retail onion prices, the Indian government is set to release onions from its buffer stock into the open market. Consumer Affairs Secretary Nidhi Khare stated that a service called 'Kanda Express' will be utilized for bulk transportation of onions via rail from Maharashtra to major consuming cities nationwide. This initiative aims to curb the current price surge.

As of August 24, 2026, the average retail price of onions has reached Rs 41.64 per kg, a 45% increase from the previous year. Prices have seen a more than 19% rise in the past month, with Delhi-NCR exceeding Rs 55 per kg. Trade sources attribute this spike partly to a potential 5-7% decline in Maharashtra's Kharif onion output, India's largest producing state, due to reduced planting and delayed monsoon rains.

Despite these concerns, NAFED and the National Cooperative Consumers' Federation of India have procured approximately 0.12 million tonnes of onions for the current fiscal year's buffer stock. The procurement price has been revised multiple times, currently standing at Rs 2,645 per quintal. Wholesale prices in Lasalgaon, Maharashtra, rose to around Rs 3,800 per quintal recently, from approximately Rs 2,000 per quintal in June 2026.

Farmers note that current prices offer remunerative returns, with ample onion stocks available across Maharashtra and Madhya Pradesh. The estimated cost of onion production this year is around Rs 2,000-2,200 per quintal. Onion production for the 2025-26 crop year is projected to be around 30.73 MT, similar to the previous year's 30.76 MT. The rabi harvest, crucial for domestic supply until October, has been completed, and Kharif sowing is also finished in key states.