6 days ago
Government Says Onion Supplies Sufficient Despite Festive Price Pressures
The government says there will be enough onions during the festive and wedding seasons.
Onion prices often rise at this time because more people want to buy them.
The government is watching onion supplies, deliveries and prices across India.
It has bought onions to keep in reserve.
Some onions are being sold for ₹35 per kilogram through shops and mobile vans.
Trains and trucks are also carrying onions to cities where they are needed.
Onion production is expected to be slightly lower than last year, but officials say stocks and government action should help.
However, average onion prices have already risen compared with last month and last year.
The government said onion availability is comfortable and festive-season demand will be met.
Onion production is estimated at 307.37 lakh tonnes in 2025-26, slightly below the previous year.
The government has procured about 1.21 lakh tonnes of rabi onions toward a 2 lakh-tonne buffer target.
Onions are being sold at ₹35 per kg through outlets and mobile vans operated by government-linked retailers.
The all-India average retail onion price was reported at ₹46.74 per kg, up 35% from a month earlier and 63% year-on-year.
- Who
- The central government, along with NAFED, NCCF and other supply agencies, is managing onion stocks and sales.
- What
- Officials said onion supplies are adequate while announcing buffer releases, discounted retail sales and expanded transport.
- Where
- Supplies are being moved from Nashik to Delhi-NCR and cities including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.
- When
- The measures cover the 2025-26 and 2026-27 marketing periods; the article also reports prices on Wednesday and as of August 26.
- Why
- The measures aim to meet higher festive and wedding-season demand, protect consumers and farmers, and prevent unwarranted price increases.
Government and Supply Agencies
Price and Demand Concerns
Adequacy of supply
Government and Supply Agencies
The government says onion availability is comfortable and that production, buffer stocks and market interventions will meet festive demand.
Price and Demand Concerns
The reported average retail price has risen substantially, indicating continuing pressure for consumers despite the government’s assurance.
Seasonal price increases
Government and Supply Agencies
Officials say seasonal price rises are expected because of increased demand and supply-chain factors, and that further action will be taken if necessary.
Price and Demand Concerns
Consumers may face higher costs during the festive and wedding seasons because demand is expected to increase.
Government intervention
Government and Supply Agencies
The government is releasing buffer onions, selling them at ₹35 per kg and expanding rail and road shipments to several cities.
Price and Demand Concerns
The need to widen release quantities, coverage and disposal channels will depend on market conditions and future price trends.
Key facts
- Estimated production
- 307.37 lakh tonnes in 2025-26, compared with 307.67 lakh tonnes the previous year.
- Buffer procurement target
- 2 lakh tonnes of rabi onions for the Price Stabilisation Fund in 2026-27.
- Procurement achieved
- Around 1.21 lakh tonnes had been procured through NAFED and NCCF.
- Discounted retail price
- Onions are being sold at ₹35 per kg through selected outlets and mobile vans.
- Reported average retail price
- ₹46.74 per kg on Wednesday, 35% higher than a month earlier and 63% higher year-on-year.
- Export volume
- About 3.82 lakh tonnes were exported during April-June 2026.
- Kanda Express shipments
- Nearly 88,000 tonnes were transported through 86 railway rakes to 16 cities in 2025-26.
Quotes
Department of Consumer Affairs
Government department monitoring onion availability, arrivals and prices
“With the onset of the festive season, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali and the wedding season, onion prices typically witness a seasonal uptick owing to higher demand and supply-chain factors.”
businesstoday.in
Sources
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