Govt monitors onion prices, plans calibrated buffer releases to check volatility

The government is closely monitoring onion prices, arrivals and availability, saying stocks are sufficient to meet domestic demand in coming months. Buffer stocks are being released in a calibrated manner, while Kanda Express is facilitating supplies to major consumption centres

New Delhi: The government is closely monitoring onion prices, market arrivals and availability across states to ensure adequate supplies and protect consumers from undue price volatility, government sources said on Monday, adding that onion availability is currently comfortable to meet domestic demand in the coming months, supported by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26 which is in line with the previous year’s production of 307.67 LMT.

In addition, buffer stocks are available for calibrated market intervention, said sources.

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The government remains committed to protecting consumer interests while keeping farmer interests at the centre of its price-stabilisation approach.

Onion prices have generally shown seasonal uptick and volatility from August -September onwards owing to increased festive season, weather conditions, supply-chain movements and demand conditions during this period.

Timely bulk release in mandis and targeted retail sales in major consumption centres play a critical role in augmenting supplies and moderating undue price volatility during the lean season, said sources.

“Consistent with the strategy adopted in previous years, Onions are being released from buffer stock in calibrated manner based on continuous monitoring of prices and market conditions across states during the current year as well. The timing, quantity and destination of such releases are calibrated according to prevailing market conditions and identified requirements in consumption centres,” according to government sources.

Moreover, initiatives such as Kanda Express (bulk transportation by rail rakes) enhance logistical efficiency and facilitate the large-scale movement of onions across the country.

The Kanda Express initiative, launched in 2024-25, has been scaled up subsequently.

During 2024-25, onion buffer stocks were transported through 14 railway rakes carrying nearly 12,000 MT of onions to five cities. In 2025-26, operations expanded substantially, with 86 railway rakes transporting around 88,000 MT of onions to 16 major cities across the country.

Building on the successful experience of the previous year, the transportation and disposal release of onions from Nashik to key consumption centres commenced from August 24.

The initiative will initially cover five major consumption centres — Chennai, Madurai, Delhi, Kochi and Guwahati — with additional destinations to be included subsequently based on emerging market requirements, said sources.

The government is monitoring onion prices, market arrivals and availability on a continuous basis and will undertake further interventions wherever required.