Govt may release buffer onion stocks: Khare
To rein in the sharp rise in retail onion rates, the administration may start offloading onions from its buffer stock in the open market, Consumer Affairs Secretary Nidhi Khare noted.
To rein in the sharp rise in retail onion rates, the administration may start offloading onions from its buffer stock in the open market, Consumer Affairs Secretary Nidhi Khare noted.
Article outline
- What happened
- The key numbers
- Background
- The bottom line
Key points
- The agencies had procured 0.3 MT and 0.47 MT in FY26 and FY25, respectively.
- According to the Department of Consumer Affairs, the average retail cost of onions rose to Rs 41.64 per kg on Saturday, up 45% from a year earlier.
- She remarked there were sufficient stocks with both the administration and farmers to meet demand in the coming months.
"Looking at the recent rise in prices, we are preparing to start Kanda Express for the bulk transportation of onions by rail from buffer stocks kept in Maharashtra to key consuming centres across the country, " Khare informed FE. She remarked there were sufficient stocks with both the administration and farmers to meet demand in the coming months.
According to the Department of Consumer Affairs, the average retail cost of onions rose to Rs 41.64 per kg on Saturday, up 45% from a year earlier. While costs in Delhi-NCR have crossed Rs 55 per kg, retail rates have risen by more than 19% over the past month.
Nevertheless, trade sources attributed the rate rise to reports of a 5-7% decline in kharif onion output in Maharashtra, the country's largest onion-producing state, due to lower acreage and delayed monsoon rains.
Farmers' cooperatives NAFED and the National Cooperative Consumers' Federation of India have so far procured around 0.12 million tonne (MT) of onions for the current fiscal year's buffer stock. The agencies had procured 0.3 MT and 0.47 MT in FY26 and FY25, respectively.
Notably, the procurement cost for onions was fixed at Rs 1, 270 per quintal in May and has since been revised seven times, reaching Rs 2, 645 per quintal last week to encourage procurement.
Wholesale onion rates in Lasalgaon, Maharashtra-the country's largest onion trading hub-rose to around Rs 3, 800 per quintal on Saturday, from around Rs 2, 000 per quintal in June 2026.
Taken together, the developments around govt may release buffer onion stocks: Khare point to a situation that is still moving, and the coming days should bring more clarity.
