6 days ago
Government Says Onion Supplies Comfortable As Buffer Releases Target Prices
The government says there should be enough onions for people in the next few months.
It is taking onions from its stored supply and sending them to cities by trains, trucks and shops.
This is happening before festivals and the wedding season, when people usually buy more onions.
The government says these extra onions can help stop prices from rising too much.
The average onion price fell from ₹43.53 to ₹37.87 per kilogram in two days.
Some government-linked shops and vans are selling onions in Delhi for ₹35 per kilogram.
Onion production is expected to be almost the same as last year.
However, onion prices had still increased recently and made home-cooked meals more expensive.
The Centre has begun releasing buffer-stock onions ahead of festivals and the wedding season.
All-India average retail onion prices fell 13% to ₹37.87 per kg between 24 and 26 August.
The government estimates 2025-26 onion production at 307.37 lakh tonnes, nearly unchanged from the previous year.
Onions are being sold at ₹35 per kg through government outlets and mobile vans in Delhi.
India exported about 3.82 lakh tonnes of onions between April and June, mainly to Malaysia, Sri Lanka, the UAE and Nepal.
- Who
- The Department of Consumer Affairs, led in this announcement by consumer affairs secretary Nidhi Khare, is releasing government-held onion stocks.
- What
- The Centre is transporting and selling buffer-stock onions to support supplies and moderate prices.
- Where
- Onions are being moved from Nashik to Delhi-NCR and other cities including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.
- When
- The announcement was made on Wednesday; prices cited were for 24 and 26 August, and the releases are planned for the coming months.
- Why
- The releases aim to meet higher demand during festivals and the wedding season and limit seasonal price increases.
Government Supply Outlook
Household Cost Concerns
Availability and prices
Government Supply Outlook
The government says production, buffer stocks and targeted releases will provide comfortable supplies and moderate seasonal price pressures.
Household Cost Concerns
Recent price increases have raised household food costs; onion prices rose 8% year-on-year and 10% month-on-month in July, according to Crisil Intelligence.
Effect on meals
Government Supply Outlook
Selling onions at ₹35 per kg through government outlets and expanding transport are intended to make supplies more available and affordable.
Household Cost Concerns
The cost of a home-cooked vegetarian thali rose 4% year-on-year in July, while a non-vegetarian thali rose 9%, with onion prices contributing to the increase.
Key facts
- Average retail price
- ₹37.87 per kg on 26 August, down from ₹43.53 per kg on 24 August.
- Estimated production
- 307.37 lakh tonnes in 2025-26, compared with 307.67 lakh tonnes the previous year.
- Government sale price
- ₹35 per kg through mobile vans and designated retail outlets.
- Buffer procurement target
- 2 lakh tonnes of rabi onions for the 2026-27 price stabilization fund buffer; about 1.21 lakh tonnes had been procured.
- Rail transport
- The first Kanda Express shipment left Nashik for New Delhi; 86 railway rakes moved around 88,000 tonnes to 16 cities in 2025-26.
- Exports
- About 3.82 lakh tonnes were exported during April-June.
- Price monitoring
- The Department of Consumer Affairs tracks 41 essential commodities across 579 centres.
Quotes
Nidhi Khare
Consumer Affairs Secretary of India
“The calibrated and targeted mechanism to keep onion prices in check has yielded immediate results, with retail onion prices declining by 13% in two days. As of 26 August, the all-India average retail price of onion stood at ₹37.87 per kg, down 13% from ₹43.53 per kg on 24 August.”
livemint.com
Sources
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