Centre Sells 4,000 Tonnes Buffer Onion To Curb Prices

The Centre has sold around 4,000 tonnes of buffer onions across 17 cities in the first 10 days of a subsidised retail intervention aimed at controlling rising onion prices.

Consumer Affairs Secretary Nidhi Khare said the government, through its agencies National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (Nafed), is maintaining a buffer stock of 1.21 lakh tonnes of onions for 2026.

The stored onions are being transported in bulk from producing states to major consumption centres through dedicated railway rakes, including the “Kanda Express”, and trucks. The onions are being sold at a subsidised rate of ₹35 per kg in select price-sensitive cities.

Khare said bulk consignments have already reached Delhi and Chennai through the Kanda Express, while a third rake is being loaded for dispatch to Guwahati in the coming days.

The government’s intervention has provided some relief to consumers, with onion prices witnessing a slight decline. The quality and quantity of the government’s buffer stock were comparable to the onions being sold by private traders.

The rabi onion crop, which is generally stored for release later in the year, suffered some damage during harvesting due to untimely rains.

NCCF Managing Director Anice Joseph Chandra said the federation alone has sold 1,500 tonnes of buffer onions across various cities. The focus is on retail and selling at ₹35 per kg.

Several state governments have shown interest in joining the scheme. NCCF has partnered with some states to distribute onions through its stores, mobile vans, cooperative societies and other platforms identified by local administrations.

The subsidised sale has led to a ₹2-3 per kg fall in prices. Data maintained by the Department of Consumer Affairs shows the average all-India retail price of onion stood at ₹50.79 per kg compared to ₹48.5 per kg when the subsidised sale was launched on August 28.

On September 5, onion was retailing at ₹58 per kg in Delhi, ₹53 per kg in Mumbai, ₹63 per kg in Chennai and ₹40 per kg in Ranchi, while the average wholesale price stood at ₹42.79 per kg.

The outlook for the new kharif onion crop looks promising, and its arrival is expected to further stabilise prices.

The Centre's intervention is a significant step towards controlling rising onion prices and providing relief to consumers. The success of this initiative will depend on the continued supply of buffer onions and the participation of state governments in the scheme.

In conclusion, the Centre's sale of buffer onions has had a positive impact on prices, and the government's efforts to maintain a buffer stock and transport onions to major consumption centres are commendable. The initiative is expected to continue, and its impact will be closely monitored by consumers and traders alike.