Centre's Rs 35/kg Onion Sale Fails to Cool Retail Prices

Despite selling 4,000 tonnes of buffer onions across 17 cities at Rs 35/kg, the all-India average has climbed to Rs 50.79/kg. Kharif relief awaited by mid-October.

The Centre has drawn down its onion reserves to steady household budgets, yet the national retail average has climbed rather than fallen since the programme began. The all-India price now stands at Rs 50.79 per kg, up from Rs 48.5 per kg when the government started releasing stock on August 28, figures from the department of consumer affairs show.

Over the first 10 days, agencies moved roughly 4,000 tonnes of buffer onions into 17 cities and sold them at Rs 35 per kg in price-sensitive locations. Consumer affairs secretary Nidhi Khare confirmed the volume to PTI on Sunday, saying the subsidised supply had eased pressure at the margins.

City-level rates on September 5 underlined how uneven the market remains. Delhi shoppers paid Rs 58 per kg, Mumbai Rs 53, and Chennai Rs 63, while Ranchi sat lower at Rs 40. The wholesale average across the country was Rs 42.79 per kg.

The releases are drawn from a 2026 buffer of 1.21 lakh tonnes, distributed through the National Cooperative Consumers' Federation (NCCF) and Nafed. Supplies are hauled from growing regions to demand centres by road and by a purpose-run rail service branded the "Kanda Express". Bulk loads have already reached Delhi and Chennai by rail, and Khare said a third rake was being packed for Guwahati within days.

"The distribution of buffer onions has brought some relief to consumers. Prices have fallen slightly," Khare said. She added that the government stock matched what private traders were offering in both grade and volume.

NCCF's Rs 35 counter

NCCF has handled 1,500 tonnes of the total on its own, managing director Anice Joseph Chandra said. "So far, we have sold 1,500 tonnes of buffer onions in different cities across the country. The focus is on retail and selling at Rs 35 per kg," she said.

The federation's counters are active across Delhi-NCR, Tamil Nadu, Uttar Pradesh, Kerala, Rajasthan, Punjab, Odisha and several other states, with more state governments seeking to join. NCCF is routing the discounted stock through its own outlets, mobile vans, cooperative societies and platforms picked out by local administrations. Chandra estimated the effort had trimmed prices by Rs 2 to Rs 3 per kg.

The Central Warehousing Corporation, named as the nodal agency, is sorting, grading, packing and transporting the stock to the states.

Waiting on the kharif harvest

Part of the strain traces back to the rabi crop, which is typically held in storage for release later in the year. Khare said untimely rains had damaged some of that harvest as it was being lifted from the fields, hurting its keeping quality.

Attention has now turned to the incoming kharif crop, which officials described as promising. Fresh arrivals are expected to reach markets from mid-October, a supply boost that could loosen the current tightness and bring firmer relief on prices.

onion prices, buffer stock, NCCF, Nafed, Kanda Express, kharif onion crop, consumer affairs, India food inflation