New Delhi, August 26: In a significant move to control rising onion prices in the country, the central government has announced that it will sell onions at a subsidized rate of ₹35 per kilogram starting Thursday in the national capital. Currently, retail prices for onions have surged to between ₹55 and ₹60 per kilogram in various markets.
A senior official revealed that the onions being released into the market are part of a buffer stock of 121,000 tons created for 2026. The government is intervening in the market using its price stabilization fund to prevent further price hikes and provide relief to consumers.
The sale of onions at the discounted rate will be conducted through the National Agricultural Cooperative Marketing Federation of India (NAFED), the National Cooperative Consumer Federation (NCCF), and central warehouses. The NCCF will make onions available directly to consumers through 100 central warehouse outlets in Delhi. Additionally, the program may extend to Mother Dairy centers across the Delhi-NCR region.
Currently, the NCCF has approximately 62,000 tons of buffer stock of onions. The organization has dispatched 400 tons of onions from Nashik via a special train service called ‘Kanda Express,’ expected to arrive in Delhi by Thursday.
NAFED also holds a stock of around 55,000 tons of onions and plans to sell them at discounted rates in other major consumption centers, including Kochi and Guwahati. The first special train carrying 800 tons of onions has already departed for Delhi.
In addition to Delhi, onions will also be supplied to Chennai, Ernakulam, Madurai, and Guwahati through special freight trains. Consumer Affairs Minister Pralhad Joshi stated that this initiative will soon be implemented in other cities such as Kolkata, Bhubaneswar, Hyderabad, Chennai, Bengaluru, Ahmedabad, Guwahati, and Raipur.
Meanwhile, the government’s announcement of market intervention has already started to impact wholesale markets, leading to a decline in wholesale prices in major onion markets like Nashik and Lasalgaon. A senior official noted that this measure has also affected speculation regarding price increases, which has been a significant factor driving prices up in recent days.
This action comes in response to a sharp rise in onion prices over the past month. On August 25, the average retail price of onions across the country was recorded at ₹44.72 per kilogram, up from ₹34.80 per kilogram on July 25, marking an increase of over 28% in just one month. Compared to the previous year, the average retail price of onions in August 2025 was ₹28.67 per kilogram, indicating a nearly 56% rise this year.
The government believes that phased supply from the buffer stock and special transportation arrangements will enhance market availability, potentially easing onion prices and providing relief to consumers in the coming days.
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