Onion prices fall 9pc in wholesale markets in nine days: Govt

Wholesale onion prices have declined 9 per cent over nine days, Consumer Affairs Secretary Nidhi Khare said. The Centre expects retail rates to moderate while releasing buffer stocks and selling onions at Rs 35 per kg through various outlets

New Delhi: Consumer Affairs Secretary Nidhi Khare on Wednesday said onion prices had declined by 9 per cent in wholesale markets over the past nine days and expected retail rates to start moderating.

The all-India average retail price of onion stood at Rs 53.92 per kg on Tuesday, up 48 per cent from a month ago and 94 per cent from a year ago.

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According to the latest government data, inflation in onion prices rose to 48.27 per cent in August from 22.54 per cent in July.

To control prices, the Centre last month started selling onions at Rs 35 per kg, lower than market rates, through retail outlets of NCCF, NAFED and Kendriya Bhandar, as well as mobile vans, as part of its efforts to provide relief to consumers.

“There is no dearth in the availability of onions. Since the time that we started the retail intervention to make sure that onions reach consumers at Rs 35 per kg, we have been able to reach about 48 cities in the country. We have used a hybrid way, both transportation by retail rates as well as trucks,” Khare told reporters on the sidelines of an event organised by industry body PHDCCI.

“I can say that now, when we see and analyse the mandi prices in the last nine days, there has been a decrease of 9 per cent in the prices,” she said, while replying to a query regarding the price and availability situation of onions in the country.

The secretary said the decline in wholesale rates would have a positive impact on retail prices, which were expected to moderate.

The government has begun a calibrated release of onion buffer stocks under a hybrid transportation model, combining railway rakes (Kanda Express) and road transport, to ensure adequate availability and check seasonal price pressures.

The disposal of onions from the Price Stabilisation Fund (PSF) buffer, which began on August 24 through NAFED and NCCF, has helped improve market availability and ease prices.

The government maintained 1.21 lakh tonnes of onions in its buffer stock for the current year.

Onion production stood at 307.37 lakh tonnes in 2025-26, a marginal dip from 307.67 lakh tonnes in the preceding year.

Onion prices typically see a seasonal uptick from August to September due to festive demand, weather-related disruptions, supply chain movements and shifting demand patterns.