The Centre has begun a targeted release of onions from its buffer stocks to major consumption centres across the country as it seeks to ensure adequate availability and moderate seasonal price pressures in the coming months. The Ministry of Consumer Affairs, Food and Public Distribution said the intervention is being carried out through a hybrid transportation model involving railway rakes and road transport. Supplies will be directed to major consumption centres based on prevailing market conditions, arrivals and price trends.
The move comes ahead of the festive and wedding season, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra and Diwali, when onion prices typically face seasonal pressure because of higher demand and supply-chain factors. The government has said that onion availability remains comfortable and is expected to be sufficient to meet domestic demand in the coming months. Estimated onion production for 2025-26 stands at 307.37 lakh tonnes, broadly in line with the previous year's production of 307.67 lakh tonnes.
Editorial Insight
Key Highlights
Important points readers should notice.
The intervention is about price management, not an acknowledged nationwide onion shortage. The government says overall availability remains comfortable, while targeted releases are being used to address seasonal price pressure.
Logistics has become an important part of India's food-price management strategy. The expansion of Kanda Express shows that moving existing stocks quickly to high-price markets can be as important as maintaining the buffer itself.
The timing of the intervention is significant. The government is acting before the main festive and wedding-season demand period, rather than waiting for a prolonged price spike to develop.
The effectiveness of the measure will depend on market transmission. Releasing buffer stocks can moderate prices only if the additional supply reaches the markets and consumers where price pressure is strongest.
As part of its price-stabilisation measures, the government had fixed a procurement target of 2 lakh tonnes of Rabi onions for the Price Stabilization Fund buffer for 2026-27. Procurement began on May 15 through NAFED and NCCF, with around 1.21 lakh tonnes procured so far. The Centre has now started releasing these buffer stocks in a calibrated manner instead of flooding markets with supplies. The quantity, geographical coverage and distribution channels will be expanded depending on market conditions and price movements.
Onions to Be Sold at ₹35 Per Kg
Under the targeted retail intervention, onions will be sold at ₹35 per kg through selected outlets and mobile vans operated by NCCF and NAFED, as well as through Safal and Kendriya Bhandar outlets.
Editorial Analysis
Why This Matters
Onions are a major household food item and an important component of India's food-price basket. Sharp increases can directly affect household budgets and contribute to broader food inflation. The government's intervention therefore seeks to balance two objectives: keeping onions affordable for consumers while avoiding unnecessary disruption to the market and ensuring that farmers continue to receive remunerative prices. The move also comes as the government monitors inflationary pressures from essential food commodities.
The government said NCCF will operate through 9 outlets and 40 mobile vans, while NAFED will use 13 outlets and 50 mobile vans. Around 100 Kendriya Bhandar outlets will also participate in the retail distribution. The objective is to provide consumers access to onions at an affordable price while preventing undue volatility in retail markets.
Kanda Express to Move Buffer Stocks
The Centre is also using the Kanda Express initiative to move buffer onions from producing regions to major consumption centres. The first Kanda Express carrying onions has departed from Nashik towards New Delhi. The government is combining railway movement with road consignments to improve the speed and reach of the distribution network. The rail-based system has expanded significantly in recent years. During 2024-25, 14 railway rakes transported nearly 12,000 tonnes of buffer onions to five cities. In 2025-26, the operation expanded to 86 rakes carrying around 88,000 tonnes to 16 cities.
Price Pressure and Government Response
The intervention comes after a sharp rise in onion prices in several markets. The all-India average retail price had risen to ₹43.53 per kg on August 24, according to government data cited in recent reporting, before falling to around ₹37.87 per kg by August 26 following market interventions. The government has maintained that the current situation does not reflect an overall shortage of onions. Instead, the targeted release is intended to manage seasonal price movements and ensure that adequate stocks reach consumption centres where prices are under pressure.
The government has also engaged the Central Warehousing Corporation (CWC) for the first time as the storage agency for the Price Stabilization Fund onion buffer during 2026-27, with the aim of improving storage management and operational efficiency.
