What Happened

The Government has initiated the calibrated and targeted release of onions from its buffer stock. This intervention aims to ensure adequate availability and moderate seasonal price pressures in the coming months, particularly with the onset of the festive and wedding seasons. Retail sales of onions at ₹35 per kg have been launched through mobile vans and outlets of NCCF, NAFED, Safal, and Kendriya Bhandar.

Key Facts

  • The Government commenced the release of onions from buffer stock on August 26, 2026.
  • The intervention uses a hybrid transportation model combining railway rakes and road transport.
  • The first “Kanda Express” carrying onions departed from Nashik for New Delhi.
  • Onions will be sold at ₹35 per kg through NCCF, NAFED, Kendriya Bhandar, and Safal outlets.
  • NCCF will utilize 9 outlets and 40 mobile vans for retail sales, while NAFED will use 13 outlets and 50 mobile vans, and Kendriya Bhandar about 100 outlets.
  • Estimated onion production for 2025-26 is 307.37 LMT, broadly in line with the previous year’s 307.67 LMT.
  • A procurement target of 2.00 LMT of Rabi onion for the Price Stabilization Fund (PSF) buffer was set for 2026-27, with procurement commencing on May 15, 2026.
  • Around 1.21 LMT of onions have been procured for the buffer through NAFED and NCCF.
  • The Central Warehousing Corporation (CWC) is engaged as the storage agency for the PSF onion buffer for 2026-27.
  • Onion exports during April-June 2026 stood at approximately 3.82 LMT, with major destinations including Malaysia, Sri Lanka, UAE, and Nepal.
  • The Department of Consumer Affairs monitors daily prices of 41 essential commodities, including onion, across 579 centers.
  • As of August 26, 2026, the All-India average retail price for onion was ₹37.87/kg.

Why It Matters

This proactive intervention by the Government seeks to address potential price volatility and ensure consumer access to affordable onions during a period of typically higher demand. The use of buffer stocks and a distributed retail network reflects a strategy to manage supply and price stability nationwide.

What To Watch

The Government will continue to monitor onion prices, arrivals, and availability across states. Future interventions and adjustments to the scale, coverage, and channels of buffer stock releases will be made based on prevailing market conditions and price trends.