Onion Prices Rise 59% Nationwide, Govt Rushes Stocks

The Centre has started transporting bulk onion stocks through dedicated 'Kanda Express' railway rakes from Nashik to major consumption centres as prices rise sharply across the country.

The all-India average retail onion price climbed 59 percent year-on-year to Rs 43.53 per kilogram on August 24 from Rs 27.37 a year earlier.

Consumer Affairs Secretary Nidhi Khare said the consignments are expected to reach their destinations by Wednesday.

Among major cities, onions were selling at Rs 60 per kilogram in Chennai, compared with Rs 33 last year.

Prices reached Rs 55 in Delhi against Rs 35 earlier and Rs 53 in Kolkata.

Initial supplies will be sent to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with destinations to be added depending on changing market requirements.

The onions will be released in wholesale and retail markets, with NAFED and the National Cooperative Consumers’ Federation selling the commodity at Rs 35 per kilogram.

Khare said the government was monitoring market movements and could take additional measures, pointing to possible cartelisation and speculation.

The Centre holds 1.21 lakh tonnes of onions in its buffer, which Khare said was sufficient to meet domestic demand.

India’s onion production is estimated at 307.37 lakh tonnes in 2025-26, unchanged from 307.67 lakh tonnes in the previous year.

The ministry expects output, buffer availability and intervention to moderate prices while protecting consumer and farmer interests.

Onion prices typically rise during August and September due to festive demand, weather disruptions and supply-chain movements.

The government decides the timing, volume and destination of releases after monitoring prices, arrivals and availability across states.

The price surge has been attributed to a combination of factors, including a decline in supply post-Diwali and possible speculation in the market.

The government's intervention is aimed at stabilizing prices and ensuring that consumers have access to affordable onions.

The situation is being closely monitored, and further measures may be taken if necessary to prevent any further price increases.

The Centre's efforts to moderate onion prices are part of its broader strategy to protect consumer interests and ensure that essential commodities are available at affordable prices.

The government's price stabilization fund has been instrumental in helping to regulate prices and prevent excessive volatility in the market.

Overall, the government's intervention in the onion market is a welcome move, and it is hoped that it will help to bring prices back under control and provide relief to consumers.