Onion Prices Remain High Despite Government’s Rs 35/kg Buffer Sale
The Indian government is releasing onion reserves to stabilize rising prices, but the national average has continued to climb. As of September 5, the average retail price for onions reached Rs 50.79 per kg, up from Rs 48.5 per kg since the intervention began on August 28. Approximately 4,000 tonnes of buffer onions have been sold across 17 cities in the first ten days of the initiative.
Onion prices vary significantly across major cities. In Delhi, onions are selling for Rs 58 per kg, while in Mumbai, the price is Rs 53 per kg. Chennai sees the highest price at Rs 63 per kg, and Ranchi has the lowest at Rs 40 per kg. The average wholesale price stands at Rs 42.79 per kg. The government is utilizing its 1.21 lakh tonnes of buffer stock, distributing onions through agencies like NCCF and Nafed, and employing a dedicated railway service called “Kanda Express” to transport onions to consuming centers.
NCCF Sales and Distribution Efforts
The National Cooperative Consumers’ Federation (NCCF) has sold 1,500 tonnes of buffer onions in various cities. Managing Director Anice Joseph Chandra confirmed that the focus remains on retail sales at Rs 35 per kg. The NCCF’s distribution efforts are concentrated in states including Delhi-NCR, Tamil Nadu, Uttar Pradesh, and others. Several state governments are also collaborating in this initiative.
The Central Warehousing Corporation (CWC) is responsible for sorting, grading, and packing the buffer stock, as well as managing its distribution to the states. Chandra noted that the intervention has led to a price reduction of Rs 2-3 per kg. Consumer affairs secretary Nidhi Khare mentioned that the rabi onion crop faced damage due to untimely rains, but the outlook for the upcoming kharif crop is promising, with arrivals expected in mid-October.
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