Centre Opens Onion Reserves to Control Prices, but Rates Rise to Rs 50.79/kg

The Centre is opening up its onion reserves to keep prices under control, but the intervention is yet to bring down the national average. Despite government's subsidised onion sale, the average all-India retail price has risen to Rs 50.79 per kg from Rs 48.5 per kg when the intervention began on August 28.

Around 4,000 tonnes of buffer onions have been sold across 17 cities in the first 10 days, according to department of consumer affairs data. On September 5, prices varied across major cities, with onion retailing at Rs 58 per kg in Delhi, Rs 53 per kg in Mumbai, Rs 63 per kg in Chennai and Rs 40 per kg in Ranchi. The average wholesale price was Rs 42.79 per kg.

The Centre has been releasing onion from its 1.21 lakh tonnes of buffer stock for 2026 through NCCF and Nafed. The agencies are moving onions from producing states to consuming centres by trucks and through a dedicated railway rake named "Kanda Express". The onions are being sold at Rs 35 per kg in selected price-sensitive cities.

"Approximately 4,000 tonnes of buffer onion have been sold so far in 17 cities," consumer affairs secretary Nidhi Khare told PTI on Sunday. The government has already sent bulk consignments to Delhi and Chennai through the Kanda Express. A third rake is being loaded for dispatch to Guwahati in the coming days, Khare said.

"The distribution of buffer onions has brought some relief to consumers. Prices have fallen slightly," she said, adding that the government's stock was comparable in size and quality to onions being sold by private traders.

NCCF accounts for 1,500 tonnes of sales

NCCF alone has sold 1,500 tonnes of buffer onions in different cities, its Managing Director Anice Joseph Chandra said. "So far, we have sold 1,500 tonnes of buffer onions in different cities across the country. The focus is on retail and selling at Rs 35 per kg," she said.

The federation's retail intervention is underway in Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab, Odisha and a few other states. Several state governments have also expressed interest in participating in the scheme. NCCF has tied up with some states to distribute the subsidised onions through its stores, mobile vans, cooperative societies and other platforms identified by local administrations.

The Central Warehousing Corporation (CWC), which is the nodal agency, is handling the sorting, grading and packing of the buffer stock, besides its movement to the states. According to Chandra, the intervention has brought down prices by Rs 2-3 per kg.

Khare said that the rabi onion crop, which is generally stored for release later in the year, suffered some damage during harvesting because of untimely rains. The government is now looking towards the new kharif crop, for which officials said the outlook is promising. The crop is expected to start arriving in markets from mid-October, which could ease supply pressure and provide further relief on prices.