Govt to release onions at Rs 35 per kilo as retail prices surge
After rising sugar prices, onion shortage has now hit Indian consumers. In Delhi, onions were being sold at Rs 65-70 a kg and while in Chennai they were being sold at Rs 60-70. On Monday, Union consumer affairs secretary, Nidhi Khare, announced that buffer onion stock will be released in mandis and retail markets across five major consuming centres in order to cool prices.
“The department has started moving bulk onion stocks through dedicated railway rakes — the Kanda Express — from Nashik in Maharashtra to major consuming centres, as part of efforts to augment supplies and check the seasonal rise in prices. Stocks currently being loaded onto these rakes are expected to reach the identified centres by Wednesday, she said.
Onion will be sold at Rs 35 per kg in the retail market through NCCF and Nafed. The Government has a buffer stock of 1.21 lakh tonnes of onion for the current year, sufficient to meet the demand.
Data maintained by the ministry shows the all-India average retail price of onion rose 59 per cent year-on-year to Rs 43.53/kg on August 24, from Rs 27.37/kg a year ago. The average wholesale price was up 68 per cent at Rs 35.58/kg, against Rs 21.23/kg in the year-ago period. Among major cities, retail onion prices on Monday stood at Rs 60/kg in Chennai (Rs 33 a year ago), Rs 55/kg in Delhi (Rs 35) and Rs 53/kg in Kolkata.
Onion prices typically see a seasonal uptick from August-September, on account of festive demand, weather-related disruptions, supply-chain movements and shifting demand patterns. To counter this, the ministry undertakes calibrated release of buffer stocks “through bulk mandi releases and targeted retail sales in consumption centres”, a strategy it said has been consistently followed in recent years.
The timing, quantity and destination of releases are decided based on continuous monitoring of prices and market conditions across States. In 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onion buffer stock were dispatched to five cities. In 2025-26, this has expanded to 86 rakes carrying about 88,000 tonnes of onions to 16 major cities across the country.
“Mandi prices in Nasik are ruling higher than Delhi, which should be the case. It means cartelisation and speculation are at work,” she noted. Khare said initially, the onion will be supplied to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be included subsequently based on emerging market requirements. She said the Government is keeping a close watch on prices to take further steps.
Khare said onion availability remains comfortable to meet domestic demand over the coming months, supported by estimated 2025-26 production of 307.37 lakh tonnes, ‘broadly on a par with 307.67 lakh tonnes in the previous year.
Meanwhile, amid rise of sugar prices, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has claimed that there is no shortage of sugar in the country and said the prices in the retail market are expected to decline in the coming days following the Government’s decision to allow imports, besides imposing stock-holding limits on traders and bulk consumers. Addressing a press conference, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) President Niraj Shirgaokar said the prices have risen due to various factors, including speculative buying by traders and bulk consumers as well as lower production than estimated.
On Monday, the average all-India retail price of sugar stood at Rs 63.05 per kg, 29 per cent higher than Rs 48.73 per kg a month back. The maximum retail price on Monday stood at Rs 75 per kg, while the model price was hovering at Rs 65 per kg, according to the Government data.
