Onion prices often start moving up when the festive and wedding season arrives, as demand rises and supply chains come under pressure. This year, the government says there is enough onion available, but it is taking steps early to prevent a sharp increase in prices.
The government has started a calibrated and targeted release of onions from its buffer stock to improve supplies and keep seasonal price pressures under control, says the Ministry of Consumer Affairs, Food & Public Distribution. The onions will be moved to major consumption centres through both railway rakes and road transport, depending on market conditions.
The government estimates , almost the same as the previous year’s production of 307.67 LMT. It said this, along with the availability of buffer stocks, should be enough to meet domestic demand in the coming months.
For 2026-27, the government had set a target of procuring 2 LMT of rabi onions for the Price Stabilisation Fund buffer. Procurement began on May 15 through NAFED and NCCF, and around 1.21 LMT has already been procured.
The Central Warehousing Corporation has also been brought in as the storage agency for the onion buffer for the first time this year.
The timing is important. The coming months include several major festivals such as Onam, Ganesh Chaturthi, Durga Puja, Dussehra and Diwali, followed by the wedding season.
Onion demand generally increases during this period. Higher demand, along with supply and transportation issues, can push retail prices higher.
To avoid a sudden rise, the government has decided to release buffer onions in a targeted manner. The quantity and locations can be increased depending on how prices and market conditions move.
Consumers will also be able to buy buffer onions at Rs 35 per kg through outlets and mobile vans operated by NCCF and NAFED. Supplies will also be available through Safal and Kendriya Bhandar outlets.
The government said the intervention is aimed at making onions available to consumers at an affordable price, particularly in markets where prices may come under pressure.
The government is also relying on railways to move onions faster from producing regions to areas where demand is higher.
The first Kanda Express of the current financial year has left Nashik for New Delhi, carrying buffer onions towards the Delhi-NCR market. At the same time, onions are being transported by road to other major consumption centres, including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.
The use of both rail and road transport is expected to help the government move stocks according to where they are needed most.
The Kanda Express initiative has expanded significantly over the past two years. In 2024-25, 14 railway rakes transported nearly 12,000 tonnes of onions to five cities. This increased to 86 railway rakes carrying around 88,000 tonnes to 16 cities in 2025-26.
Despite the government’s focus on domestic availability, onion exports have continued at a healthy pace.
India exported around 3.82 LMT of onions between April and June 2026. Malaysia, Sri Lanka, the UAE and Nepal were among the major destinations.
The government said the continued exports also reflect the availability of onions in the domestic market.
According to the government’s latest data, the all-India average retail price of onions stood at Rs 37.87 per kg on August 26.
This compares with Rs 38.33 per kg for tomatoes and Rs 22.63 per kg for potatoes. Chana dal was priced at an average of Rs 86.71 per kg, while tur dal was at Rs 123.30 per kg.
The government said prices of key pulses, including tur, gram, masur, urad and moong, as well as vegetables such as tomato and potato, remain stable and range-bound. It also noted that tomato, potato and chana dal prices are lower than they were a year ago.
The Department of Consumer Affairs monitors prices of 41 essential commodities across 579 centres every day. Onion prices, market arrivals and demand conditions are among the factors being tracked.
The government said these trends will determine where and how much buffer stock is released.
The aim is to strike a balance between keeping onions affordable for consumers and ensuring that farmers receive remunerative prices. For now, the government says supplies are comfortable, but it is preparing to step in wherever prices show signs of an unwarranted rise.