Onion prices still make eyes water despite Centre's Rs 35/kg buffer sale
Despite government efforts to stabilize onion prices through a subsidized buffer sale, retail prices in India continue to rise. The government is utilizing specialized transport like the 'Kanda Express' to distribute stock, but market demand remains high.
Why it matters
Onion prices are a sensitive political and economic issue in India, often serving as a barometer for food inflation and government effectiveness.
The Centre is opening up its onion reserves to keep prices under control, but the intervention is yet to bring down the national average. Despite government's subsidised onion sale, the average all-India retail price has risen to Rs 50.79 per kg from Rs 48.5 per kg when the intervention began on August 28. Around 4,000 tonnes of buffer onions have been sold across 17 cities in the first 10 days, according to department of consumer affairs data.On September 5, prices varied across major cities, with onion retailing at Rs 58 per kg in Delhi, Rs 53 per kg in Mumbai, Rs 63 per kg in Chennai and Rs 40 per kg in Ranchi. The average wholesale price was Rs 42.79 per kg.The Centre has been releasing onion from its 1.21 lakh tonnes of buffer stock for 2026 through NCCF and Nafed.
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