Govt Sells 4,000 Tonnes Of Buffer Onions In 17 Cities, But Prices Remain High

The government has sold around 4,000 tonnes of buffer onions across 17 cities in the first 10 days of its subsidised retail intervention aimed at containing rising prices, Consumer Affairs Secretary Nidhi Khare said on Sunday.

The Centre, through the National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (Nafed), has a 1.21 lakh-tonne onion buffer stock for 2026. The agencies are moving onions from producing states to major consumption centres by trucks and dedicated railway rakes, including the “Kanda Express”, and selling them at a subsidised rate of Rs 35 per kg in selected price-sensitive cities.

Bulk consignments have already reached Delhi and Chennai through Kanda Express, while a third rake is being loaded for dispatch to Guwahati in the coming days. The government says the intervention has brought some relief to consumers, with prices falling slightly in some markets. The quality of the government’s buffer stock is also comparable to onions being sold by private traders.

NCCF Managing Director Anice Joseph Chandra said the federation alone has sold around 1,500 tonnes of buffer onions so far. Several state governments have expressed interest in the programme, with NCCF selling through its stores, mobile vans, cooperative societies and other platforms identified by local administrations.

The retail intervention is currently underway in Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab, Odisha and other areas. The Central Warehousing Corporation (CWC) is handling the sorting, grading, packing and movement of the buffer onions to different states.

According to NCCF, the subsidised sales have resulted in a Rs 2-3 per kg decline in prices in some markets. However, the nationwide impact remains limited so far. Department of Consumer Affairs data showed that the average all-India retail onion price stood at Rs 50.79 per kg on September 5, compared with Rs 48.50 per kg when the subsidised sale was launched on August 28.

On September 5, onions were selling 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, while the average wholesale price stood at Rs 42.79 per kg. This means that despite the government’s buffer intervention, the national average retail price has not yet fallen below its level at the beginning of the subsidised sale.

Officials have attributed some of the supply pressure to damage suffered by the rabi onion crop during harvesting because of untimely rains. The government is now banking on the new kharif crop, whose market arrivals are expected to begin from mid-October, to improve supplies and ease prices.

Until then, the Centre plans to continue releasing buffer onions in price-sensitive markets. The combination of 1.21 lakh tonnes of buffer stock, subsidised Rs 35-per-kg sales and additional supplies through Kanda Express is aimed at increasing availability and providing consumers relief from elevated onion prices.