India: Govt sells 4,000 tonnes of buffer onion stocks across 17 cities

• Buffer onion sales reach 4,000 tonnes in first 10 days of retail intervention
• Subsidised supplies aim to ease regional price pressure ahead of kharif arrivals

The Centre has intensified its onion market intervention by releasing around 4,000 tonnes of buffer onions across 17 cities during the first 10 days of its subsidised retail programme, according to media reports. The move comes amid elevated retail prices following supply constraints and damage to part of the stored rabi crop.

The government has maintained a 1.21 lakh-tonne onion buffer stock for 2026 through National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (Nafed). Supplies are being moved from producing regions to major consumption centres through trucks and dedicated railway rakes, including the Kanda Express.

Under the intervention, onions are being retailed at INR 35/kg in selected price-sensitive markets. NCCF alone has distributed around 1,500 tonnes, while the remaining volume has been supplied through multiple channels and government agencies.

Buffer movement expands across consumption centres

Bulk consignments have reached Delhi and Chennai, while another railway rake is being prepared for Guwahati. NCCF is also working with state governments to distribute onions through retail outlets, mobile vans, cooperative societies and other locally identified channels.

The Central Warehousing Corporation is managing key post-harvest operations, including sorting, grading, packing and transportation of the buffer stock.

Despite the intervention, national retail onion prices remain elevated. According to the Department of Consumer Affairs, the all-India average retail price of onion stood at INR 52.23/kg on September 8, compared with INR 48.50/kg when the subsidised sale programme was launched on August 28. The department’s data also showed the all-India average wholesale price at INR 4,396.96/quintal,on September 8.

Rabi losses and kharif outlook remain key

Untimely rainfall during the rabi harvest affected crop quality and reduced the availability of onions suitable for longer storage. This has added pressure to supplies during the transition period before the next major crop enters the market.

However, officials expect the upcoming kharif crop to provide some relief. Arrivals from the new crop are expected to begin around mid-October, with increasing supplies potentially easing market tightness and limiting further price escalation.

Outlook

Buffer releases are likely to provide targeted relief in major consumption centres, although their impact will depend on the pace and geographic distribution of supplies. With retail prices still elevated in several cities, market pressure is expected to persist until kharif arrivals gain momentum from mid-October.