Relief for onion buyers? Wholesale prices fall 9% in nine days

Consumer Affairs Secretary Nidhi Khare on Wednesday said onion prices have declined by 9 per cent in wholesale markets over the past nine days and expects retail rates to start moderating.

The All-India average retail price of onion stood at Rs 53.92 per kg on Tuesday, up 48 per cent from a month ago and a 94 per cent rise from a year ago.

According to the latest government data, inflation in onions rose to 48.27 per cent in August from 22.54 per cent in July.

Centre steps up retail intervention

To control prices, the Centre last month started selling onions at Rs 35 per kg, lower than the market rates, through retail outlets of NCCF, NAFED and Kendriya Bhandar, as well as mobile vans, as part of its efforts to provide relief to common people.

"There is no dearth in the availability of onions. Since the time that we started the retail intervention to make sure that onions reach consumers at Rs 35 per kg, we have been able to reach about 48 cities in the country. We have used a hybrid way, both transportation by retail rates as well as trucks," Khare told reporters on the sidelines of an event organised by industry body PHDCCI.

"I can say that now, when we see and analyse the mandi prices in the last nine days, there has been a decrease of 9 per cent in the prices," she said, while replying to a query regarding the price and availability situation of onion in the country.

Wholesale decline may ease retail rates

The secretary said the decline in wholesale rates will have a positive impact on retail prices, which are expected to moderate.

The government has begun a calibrated release of onion buffer stocks under a hybrid transportation model, combining railway rakes (Kanda Express) and road transport, to ensure adequate availability and check seasonal price pressures.

The disposal of onions from the price stabilisation fund (PSF) buffer, which began on August 24 through NAFED and NCCF, has helped improve market availability and ease prices.

Government maintains buffer stock

The government maintained 1.21 lakh tonne of onion in its buffer stock for the current year.

Onion production stood at 307.37 lakh tonnes in 2025-26, a marginal dip from 307.67 lakh tonnes in the preceding year.

Onion prices typically see a seasonal uptick from August to September due to festive demand, weather-related disruptions, supply chain movements, and shifting demand patterns.