The Centre has begun a calibrated and targeted release of onions from its buffer stock to ensure adequate availability and contain seasonal price pressures ahead of the festive and wedding season, the Ministry of Consumer Affairs, Food and Public Distribution said on Wednesday.
The government is using a hybrid transportation model involving railway rakes and road transport to move onions from producing regions to major consumption centres, with the quantity and destinations to be expanded depending on market conditions and price trends.
The first Kanda Express carrying onions has departed from Nashik for the Delhi-NCR region. At the same time, road consignments are being sent to major consumption centres including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.
The Ministry said onion availability remains comfortable, with estimated production of 307.37 lakh tonnes (LMT) in 2025-26, broadly comparable to the previous year’s 307.67 LMT.
In view of the favourable production outlook, the government has set a procurement target of 2 LMT of Rabi onions for the Price Stabilization Fund (PSF) buffer for 2026-27. Procurement through NAFED and NCCF began on May 15, with around 1.21 LMT already procured.
For the first time during 2026-27, the Central Warehousing Corporation (CWC) has been engaged as the storage agency for the PSF onion buffer.
The Ministry said onion prices typically come under pressure during the festive season due to increased demand and supply-chain factors. This year, the period includes Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali and the wedding season.
Onions to be sold at Rs 35 per kg
As part of the retail intervention, onions will be sold at Rs 35 per kg through NCCF, NAFED, Kendriya Bhandar and other retail outlets.
NCCF will sell the onions through nine 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 initiative. Safal outlets will also be part of the intervention.
The Ministry said the targeted retail sales are aimed at ensuring that consumers have access to onions at affordable prices.
Kanda Express expands onion logistics
The Kanda Express initiative has emerged as an important mechanism for transporting buffer onions from producing regions to consumption centres.
During 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onions were transported to five cities. The operation expanded significantly in 2025-26, when 86 railway rakes moved around 88,000 tonnes of onions to 16 cities across the country.
The first Kanda Express of the current financial year has now departed Nashik for New Delhi, while road transport is being used simultaneously to supply other major markets.
Onion exports remain strong
Despite the domestic buffer interventions, onion exports have continued to remain robust. India exported approximately 3.82 LMT of onions between April and June 2026, with Malaysia, Sri Lanka, the UAE and Nepal among the major destinations.
The Ministry said the export figures reflect comfortable domestic availability.
Daily price monitoring across 579 centres
The Department of Consumer Affairs monitors prices of 41 essential commodities, including onions, across 579 centres every day. The data on prices, arrivals and demand conditions are being used to determine the scale and destinations of buffer stock releases.
The Ministry said it would continue to closely monitor onion prices and availability across states and undertake further interventions wherever necessary to prevent unwarranted price increases.
As of August 26, the all-India average retail price of onions stood at Rs 37.87 per kg. The average prices of other key commodities were Rs 38.33 per kg for tomato, Rs 22.63 per kg for potato, Rs 86.71 per kg for chana dal, Rs 40.48 per kg for atta, Rs 123.30 per kg for tur dal and Rs 60.82 per litre for milk.
The Ministry noted that prices of tomato, potato and chana dal were lower than their levels a year ago, while prices of key pulses and essential vegetables remained stable and range-bound.
The Ministry said its price stabilisation measures were aimed at balancing consumer interests with remunerative returns for farmers, with future releases from the onion buffer to be calibrated according to market conditions.
