India: Onion prices touch INR 80/kg as regional supply tightens despite buffer stocks

Onion prices have surged across several Indian markets despite the Centre maintaining that there is no nationwide shortage. Lower arrivals from some producing regions, seasonal supply constraints and uneven market availability have pushed prices higher, prompting the government to step up buffer-stock releases, subsidised sales and dedicated rail movement.

Prices in West Bengal have climbed to INR 70-80/kg from INR 30-35/kg over the past two weeks. Rajasthan prices have reached around INR 50/kg, while Jammu prices have risen to INR 60/kg from INR 20-25/kg. Dehradun prices are around INR 60/kg and Jwalapur Mandi prices about INR 50/kg.

At Agra’s Sikandra market, around 15 truckloads, or nearly 300 tonnes, of onions are arriving daily from Nashik, with wholesale prices around INR 40/kg. Lower arrivals from producing regions, including Shivpuri in Madhya Pradesh and Alwar in Rajasthan, have tightened supplies in some markets. Local demand, transportation costs, stored stocks and the timing of fresh-crop arrivals are also influencing regional prices.

Centre releases buffer onions at INR 35/kg

The Centre has started releasing onions from its price-stabilisation buffer to improve availability and contain seasonal price pressure. In Delhi-NCR, buffer onions are being sold at INR 35/kg through NCCF, NAFED, Kendriya Bhandar outlets and mobile vans.

The government expects onion production to exceed 307 lakh tonnes in 2025-26, which it considers INR sufficient to meet domestic demand. The Centre has also rejected reports that around 30% of its 1.21 lakh tonnes of onion buffer stock had spoiled, maintaining that the stock is of good quality. The Central Warehousing Corporation has been entrusted with onion storage for the first time this year to improve storage conditions and shelf life.

The first Kanda Express transported 453.65 tonnes of onions from Nashik to Delhi in a dedicated 21-wagon rake. Additional stocks are being moved to Chandigarh, Ludhiana and Jammu to improve availability in high-price markets.

Market Outlook

Overall onion availability remains adequate at the national level, but regional supply gaps are keeping prices elevated in several markets. Buffer releases, subsidised sales at INR 35/kg and faster movement of stocks are expected to provide near-term relief.

Prices will largely depend on the pace of fresh-crop arrivals, regional market availability and the speed at which buffer stocks reach affected consumption centres.