Average retail onion prices in India increased to ₹50.79 per kg despite the central government selling buffer stock at a subsidized rate of ₹35 per kg across 17 cities. The government has released nearly 4,000 tonnes of onions in 10 days to control rising market prices.
Key Data at a Glance
| Metric | Details |
| National Average Retail Price | ₹50.79 per kg (Up from ₹48.5 per kg) |
| Subsidized Retail Price | ₹35 per kg |
| Total Buffer Sold So Far | ~4,000 tonnes (in 10 days) |
| Total Target Buffer Stock (2026) | 1.21 lakh tonnes |
| National Average Wholesale Price | ₹42.79 per kg |
Retail Prices Increase Across Major Cities
The central government started selling subsidized onions on August 28 across 17 cities at ₹35 per kg. However, retail prices across the country continued to rise. Data from the Department of Consumer Affairs shows that the average retail price of onions increased from ₹48.5 per kg to ₹50.79 per kg nationwide.
Price differences remained high across major cities on September 5:
| City / Level | Retail Price (per kg) |
| Delhi | ₹65 |
| Chennai | ₹63 |
| Mumbai | ₹53 |
| Ranchi | ₹40 |
| National Average Retail | ₹50.79 |
| National Average Wholesale | ₹42.79 |
Supply Reaches Cities via Kanda Express Trains
The government is releasing onions from its total 1.21 lakh tonne buffer stock reserved for 2026. Two central agencies—National Cooperative Consumers’ Federation (NCCF) and NAFED—are managing the market release.
To speed up distribution, the government is transporting onions from major producing states using trucks and special freight trains called the ‘Kanda Express’. Consumer Affairs Secretary Nidhi Khare stated that heavy shipments have already been sent to high-demand markets like Delhi and Chennai.
Government Sells 4,000 Tonnes via Mobile Vans and Outlets
Consumer Affairs Secretary Nidhi Khare said local market prices declined by ₹2 to ₹3 per kg in areas where buffer stock was distributed. She added that the quality and size of government buffer onions match those sold by private traders.
NCCF Managing Director Anice Joseph Chandra informed that NCCF alone has sold 1,500 tonnes of onions across different cities. The agency is focusing on selling directly to retail consumers at ₹35 per kg.
The subsidized sales are currently active in several states and Union Territories, including Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab, and Odisha. Mobile vans and local housing societies are being used for retail sales. The Central Warehousing Corporation (CWC) is handling the sorting, grading, packing, and transportation of the crop.
Unseasonal Rains Damage Crop; Relief Expected in Mid-October
Explaining the main reason behind the price spike, Consumer Affairs Secretary Nidhi Khare said unseasonal rains during the harvest season damaged the Rabi onion crop. Rabi onions are crucial because they can be stored and used to meet consumer demand throughout the year.
However, the government expects market supply to improve soon. Fresh supply from the new Kharif crop will start arriving in wholesale markets (mandis) by mid-October. This increase in supply is expected to bring stable relief from high prices.
Knowledge Box: Key Terms Explained
Kanda Express: A special parcel freight train run by Indian Railways. It quickly transports onions from major producing hubs, such as Nashik in Maharashtra, directly to large consumption cities facing high demand.
Buffer Stock: A reserve stock of 1.21 lakh tonnes of onions maintained by the government. The government releases this stock into the market during off-seasons or shortages to increase supply and control sudden price spikes.
