New Delhi: Onion prices have climbed sharply across several parts of India, touching as much as Rs 80 per kg in some markets and putting pressure on household budgets. The Centre, however, has maintained that the country is not facing an overall shortage of onions and has stepped up market intervention to contain the price rise.
The government has begun a calibrated release of onions from its price-stabilisation buffer stock, with supplies being sold at a subsidised rate of Rs 35 per kg in Delhi-NCR through the National Cooperative Consumers’ Federation (NCCF), NAFED, Kendriya Bhandar outlets and mobile vans.
Consumer Affairs Secretary Nidhi Khare flagged off onion-selling vans from Krishi Bhawan in New Delhi as part of the government’s efforts to increase supplies in major consumption centres.
Why are onion prices rising?
The Centre has attributed the recent price pressure largely to seasonal and market-level factors rather than an overall shortage in production.
While onion production is expected to exceed 307 lakh metric tonnes in 2025-26, arrivals from some producing regions have remained limited. Traders have pointed to lower supplies from areas such as Shivpuri in Madhya Pradesh and Alwar in Rajasthan, contributing to tighter availability in several markets.
Onion prices also vary significantly from one region to another depending on local arrivals, demand, transportation costs and the availability of stored stocks.
In Delhi-NCR, retail prices have risen to around Rs 50-55 per kg, while prices in some open markets have reportedly reached Rs 60-70 per kg. In parts of the country, retail prices have touched around Rs 80 per kg.
Prices rise across states
The price surge has been reported in several states.
In West Bengal, onion prices have risen to around Rs 70-80 per kg, compared with Rs 30-35 per kg about two weeks ago. Rajasthan has seen prices reach around Rs 50 per kg, while prices in Jammu have climbed to approximately Rs 60 per kg from Rs 20-25 per kg over the past 15 days.
In Dehradun, onions are reportedly selling at around Rs 60 per kg, while prices at Jwalapur Mandi in Haridwar have reached about Rs 50 per kg.
Wholesale markets have also recorded an increase. At Agra’s Sikandra market, around 15 truckloads, or nearly 300 tonnes, of onions are reportedly arriving daily from Nashik, with wholesale prices hovering around Rs 40 per kg.
Centre sells buffer onions at Rs 35/kg
To provide relief to consumers, the government is releasing onions from its buffer stock at a subsidised price of Rs 35 per kg in Delhi-NCR.
The onions are being distributed through NCCF, NAFED and Kendriya Bhandar outlets, besides mobile vans. The Centre routinely uses buffer stocks to increase market availability when onion prices rise sharply.
The objective is to improve supplies in major consumption centres and prevent temporary supply constraints from translating into a wider price shock.
Centre rejects claims of buffer-stock spoilage
The government’s intervention comes amid reports that a significant portion of its stored onion stock had spoiled.
The Centre has rejected claims that around 30 per cent of its 1.21 lakh tonnes of onion buffer stock had deteriorated. Consumer Affairs Secretary Nidhi Khare said the onions in government storage were of good quality and disputed claims that the reported quantity had rotted.
The government has also introduced changes in its storage arrangements. For the first time this year, the Central Warehousing Corporation (CWC) has been entrusted with storing onions, with the aim of improving storage conditions and extending shelf life.
Kanda Express deployed to move onions
The Centre has also turned to rail transport to move onions more quickly from producing regions to major consumption centres.
The first Kanda Express, carrying 453.65 tonnes of onions from Nashik, reached Delhi on Friday. The dedicated 21-wagon rake is being used to transport buffer-stock onions to markets facing higher prices.
Part of the stock moved through the initiative is also being sent to Chandigarh, Ludhiana and Jammu.
No nationwide onion shortage, says Centre
The Consumer Affairs Ministry has maintained that India has adequate onion supplies at the national level.
Estimated production of more than 307 lakh metric tonnes in 2025-26, along with government buffer stocks and ongoing market intervention, is expected to meet domestic demand in the coming months.
However, adequate national production does not necessarily translate into uniform availability across all markets. Regional arrivals, transportation constraints, storage losses, weather-related damage and the timing of fresh-crop harvesting can cause temporary shortages and price spikes in individual markets.
What happens next?
The immediate challenge for the government is to bridge the gap between adequate national production and tighter supplies in individual markets.
The Centre is relying on a combination of buffer-stock releases, subsidised retail sales, rail transportation and improved storage arrangements to ease the pressure.
Prices could moderate as fresh-crop arrivals increase in the coming weeks. Until then, the pace at which buffer stocks reach high-price markets will be crucial in determining whether the current seasonal price pressure eases or persists.
