The Centre has sold around 4,000 tonnes of buffer onions across 17 cities in the first 10 days of its subsidised retail intervention, even as the all-India average retail price remains above Rs 50 per kg and higher than when the exercise began. The government is selling onions at Rs 35 per kg in selected price-sensitive cities through the National Cooperative Consumers’ Federation (NCCF) and Nafed as it attempts to contain the impact of rising market prices on households. Consumer Affairs Secretary Nidhi Khare said around 4,000 tonnes had been sold so far from the Centre’s buffer stock.
The government has a buffer of 1.21 lakh tonnes of onions for 2026. NCCF and Nafed are moving stocks from producing regions to major consumption centres by road as well as dedicated railway rakes dubbed the “Kanda Express”. Consignments have already reached Delhi and Chennai by rail, while a third Kanda Express is being loaded for Guwahati.
Prices remain elevated
Khare said the intervention had provided some relief to consumers and prices had declined slightly. NCCF Managing Director Anice Joseph Chandra said the federation alone had sold 1,500 tonnes and estimated that the subsidised intervention had helped lower prices by Rs 2-3 per kg in areas where sales were underway.
However, Department of Consumer Affairs data shows the all-India average retail price of onions at Rs 50.79 per kg, compared with Rs 48.50 per kg when the subsidised sale was launched on August 28.
On September 5, onions were retailing at Rs 58 per kg in Delhi, Rs 53 in Mumbai and Rs 63 in Chennai, while Ranchi recorded a price of Rs 40 per kg. The average wholesale price nationally stood at Rs 42.79 per kg.
The figures underline the challenge facing the government as it attempts to use its buffer stock to moderate prices without disrupting the wider market.
Rain damages stored crop
Khare said the rabi onion crop, which is normally stored and released later in the year, suffered some damage during harvesting because of untimely rainfall. The government maintained that onions being released from its buffer were comparable in size and quality to those sold by private traders.
NCCF’s retail operations currently cover Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab and Odisha, among other regions. Several state governments have also shown interest in joining the intervention, with onions being distributed through cooperative stores, mobile vans and other retail platforms identified by state administrations.
The Central Warehousing Corporation is handling sorting, grading, packing and transportation of the buffer stocks.
The government is now banking partly on the upcoming kharif crop to ease pressure on supplies. Officials said prospects for the crop appeared encouraging, with arrivals expected to begin from mid-October.
Until then, the Centre is expected to continue releasing buffer stocks in markets facing elevated prices, with the Rs 35-per-kg subsidised sale aimed at providing consumers an alternative as retail rates remain substantially higher in several major cities.