Onion prices have climbed sharply across India, with the national average retail price reaching around INR 42 per kg.
The government will move buffer stock from Nashik to high-price markets including Delhi, Chennai, Kochi and Guwahati.
Highlights
- Centre begins releasing onion buffer stock to contain rising retail prices.
- Special ‘Kanda Express’ trains will transport onions from Nashik to major consumption centres.
- Delhi, Chennai, Kochi and Guwahati are among the cities targeted for additional supplies.
- Average retail onion price reached around INR 42 per kg, about 45% higher than a year ago.
- Delhi prices touched INR 65 per kg, while Chennai recorded around INR 58 per kg.
- Lower kharif onion production in Maharashtra is among the factors putting pressure on prices.
New Delhi, August 24: The central government has started deploying its onion buffer stock to curb a sharp rise in retail prices, with special ‘Kanda Express’ trains set to move supplies from Nashik to major cities where prices are significantly above the national average.
The trains will transport onions to consumption centres including Delhi, Chennai, Kochi and Guwahati. The government has said that sufficient onion stocks are available and supplies will be released into the market in a calibrated manner depending on demand and price conditions.
The intervention comes after onion prices rose considerably across the country. The national average retail price was around INR 42 per kg on Saturday, nearly 45% higher than a year earlier and about 19% above the level recorded a month ago.
Consumers in some major cities are facing even steeper prices. In Delhi, onions were selling at up to INR 65 per kg, compared with around INR 35 per kg a year ago. Chennai recorded prices of around INR 58 per kg against INR 33 per kg last year. Elevated prices have also been reported in parts of Kerala and Assam.
Instead of releasing the entire buffer stock at once, the government plans to increase supplies gradually in markets where intervention is required. The move is intended to improve availability and discourage any attempt by traders to push prices higher amid tightening supplies.
One factor behind the recent price increase is concern over lower kharif onion production in Maharashtra, India’s largest onion-producing state. Market participants estimate that the state’s kharif crop could be around 5-7% lower, adding pressure to prices.
However, overall supplies remain relatively comfortable. Government estimates indicate India’s onion production could reach around 307 lakh tonnes during the 2025-26 crop year, broadly comparable with production in 2024-25. The buffer-stock intervention and movement of onions through Kanda Express are expected to improve supplies in high-price markets and help moderate retail prices in the coming weeks.
