The Central Government has taken a big step to control the rising prices of onion in the country. The government has decided that onion will be made available to consumers at a subsidized rate of Rs 35 per kg in the national capital Delhi. At present, onion prices in the retail market have reached the level of Rs 55 to Rs 60 per kg at many places.
A senior official said that the onion being launched in the market is part of the buffer stock of 1.21 lakh tonnes created for the year 2026, and the central government is intervening in the market using its Price Stabilization Fund to prevent the rise in prices and provide relief to consumers.
Onion will be sold at concessional rates through NAFED, National Cooperative Consumer Federation (NCCF) and Kendriya Bhandar. NCCF will provide onions directly to consumers through 100 Kendriya Bhandar shops in Delhi. Apart from this, the scheme can also be extended to Mother Dairy centers of Delhi-NCR.
NCCF currently has a buffer stock of about 62,000 tonnes of onion available. The organization has sent 400 tonnes of onion from Nashik in Maharashtra to Delhi through special train service 'Kanda Express', which is expected to reach by Thursday.
At the same time, NAFED also has a stock of onion of less than 55,000 tonnes. Apart from Delhi, the organization will also sell onions at concessional rates in other major consumption centers like Kochi and Guwahati. The first special rail rake carrying 800 tonnes of onion from Nashik has already left for Delhi.
Apart from Delhi, onions will also be supplied to Chennai, Ernakulam, Madurai and Guwahati through special goods trains. Consumer Affairs Minister Pralhad Joshi said that in the coming days, the scheme will also be implemented in other cities like Kolkata, Bhubaneswar, Hyderabad, Chennai, Bengaluru, Ahmedabad, Guwahati and Raipur.
Meanwhile, the impact of the government's announcement of market intervention is becoming visible in the wholesale markets as well, leading to softening of wholesale prices in Maharashtra's major onion markets Nashik and Lasalgaon. A senior official said that this move has also affected the speculation regarding price rise, which was a major reason for the rise in prices in recent times.
This step has been taken amid the sharp rise in onion prices in the last one month. On August 25, the average retail price of onion across the country was recorded at Rs 44.72 per kg, while on July 25 it was Rs 34.80 per kg.
That means prices have increased by more than 28 percent in a month. If compared to last year, the average retail price of onion in August 2025 was Rs 28.67 per kg, compared to which the prices have increased by about 56 percent this year.
The government believes that the buffer stock will increase availability in the market through phased supply and special transportation arrangements, which may reduce the pressure on onion prices in the coming days and provide relief to consumers.
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