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Despite the government's buffer stock strategy, onion prices have reached up to ₹80 per kilogram. Here are the details.

Onions are once again disrupting household budgets. A sharp rise in onion prices is being observed across many parts of the country, with reports of retail prices hitting ₹80 per kilogram in some markets. To curb rising prices, the central government has taken measures such as releasing onions from the buffer stock, selling them at lower rates, and transporting onions to major cities via the 'Kanda Express'. Despite this, people in many areas are still having to buy onions at high prices.

However, according to government data, the average retail price of onions in the country on August 28 was approximately ₹37.87 per kilogram. This means the ₹80 per kilogram rate is not the national average but the retail price in specific areas.

Why are onion prices rising?

Seasonal demand, supply chain issues, and demand-related challenges in certain regions are considered the reasons behind the current surge in onion prices. The government has also acknowledged that increased demand during the festive and wedding seasons could put pressure on prices.

Additionally, crop-related conditions in some producing states have impacted the market. Onion-producing regions like Nashik in Maharashtra play a crucial role in supplying onions to major markets across the country. The government has stated that there is currently no major cause for concern regarding onions in the country. The projected onion production for 2025-26 is 307.37 lakh metric tonnes, which is comparable to the previous year's 307.67 lakh metric tonnes.

What has the government done?

To curb rising prices, the central government has started releasing onions from its buffer stock into the market. On August 26, the government announced that onions were being supplied from the buffer stock. Both rail and road transport are being utilized for this purpose, with onions being dispatched to key consumption centers facing significant pressure on market prices.

Where did the onions from 'Kanda Express' reach?

The government launched the 'Kanda Express' to boost supplies in Delhi and surrounding areas. The first train arrived in Delhi from Nashik on August 28, carrying approximately 453.65 tonnes of onions. Prior to this, the government had already arranged to sell buffer stock onions in Delhi at a rate of ₹35 per kilogram. Affordable onions are being sold to the public through various outlets, including mobile vans operated by NCCF and NAFED.

How much relief did the ₹35/kg onions provide?

The sale of onions at ₹35 per kilogram by the central government is significantly lower than prevailing market rates. This has provided direct relief to the public and eased price pressure in the open market. However, these affordable government onions are not available everywhere; sales are limited to specific centers and mobile vans.

What is the government's claim?

The central government maintains that there are ample onion supplies in the country and sufficient stocks to meet domestic demand in the coming months. The government had set a target to procure 2 lakh tonnes of Rabi onions for the buffer stock for the 2026-27 period; by August 26, approximately 1.21 lakh tonnes had already been procured. The government is continuously monitoring onion prices, market arrivals, and availability, and has indicated that more onions from the buffer stock will be released into the market if necessary.