Onion Prices in India: Centre Plans Buffer Stock Release

AI FEED

Onion prices in India are being closely monitored as seasonal price volatility typically increases from August and September.
Onion production for 2025-26 is estimated at 307.37 lakh metric tonnes, broadly similar to the previous year.
The government has buffer stocks available for targeted market intervention.

Nashik: The Centre is keeping a close watch on onion prices in India, market arrivals and availability as the country enters a period when seasonal fluctuations can push retail prices higher.

Government sources said current onion availability is considered sufficient to meet domestic requirements in the coming months. Estimated production for 2025-26 stands at 307.37 lakh metric tonnes, broadly comparable with the previous year’s 307.67 lakh metric tonnes.

The government also has buffer stocks available to intervene if prices rise sharply or supplies tighten in particular markets.

Onion Prices in India Face Seasonal Pressure

Onion prices typically become more volatile around August and September because of changing weather conditions, festive demand, supply-chain movements and seasonal availability.

The government therefore plans to release buffer onions according to market conditions rather than flooding markets with supplies at once.

Bulk releases through mandis and targeted retail sales in major consumption centres can increase availability during periods when fresh arrivals are relatively constrained.

Onion Prices in India: Kanda Express Boosts Supply

The government is also relying on Kanda Express, a rail-based bulk transportation initiative designed to move onions efficiently from production areas to major consuming markets.

The programme began in 2024-25 and has subsequently expanded.

During 2024-25, around 12,000 tonnes of onions were transported through 14 railway rakes to five cities. The operation expanded considerably in 2025-26, when 86 railway rakes moved approximately 88,000 tonnes to 16 major cities.

The latest transportation and disposal release operation from Nashik began on August 24.

The initial destinations are Chennai, Madurai, Delhi, Kochi and Guwahati, with other cities expected to be added depending on market requirements.

Centre Balances Consumer and Farmer Interests

The government’s approach is aimed at preventing sharp price increases without undermining returns for onion growers.

Instead of relying on a single intervention, authorities are monitoring arrivals, wholesale prices, retail prices and regional availability before deciding where and when buffer stocks should be released.

This calibrated approach is particularly important because excessive supply intervention at the wrong time could put pressure on farmers, while delayed action could expose consumers to sudden price increases.