New Delhi — The government is keeping a close watch on onion prices, market arrivals and availability across the country to ensure adequate supplies and prevent sharp price fluctuations, government sources said on Monday.
According to the sources, onion availability remains comfortable to meet domestic demand in the coming months. The situation is supported by an estimated onion production of 307.37 lakh metric tonnes (LMT) in 2025-26, broadly in line with the previous year’s output of 307.67 LMT.
The government also has onion buffer stocks available for market intervention if prices rise sharply or supplies tighten in key markets.
Officials said the government’s approach is aimed at protecting consumers from excessive price increases while also ensuring that farmers’ interests remain a key consideration in decisions related to price stabilisation.
Onion prices typically become more volatile from August and September due to seasonal factors. Increased demand during the festive period, changing weather conditions, movement of produce through supply chains and variations in market demand can all influence prices during these months.
To deal with such fluctuations, the government releases onions from its buffer stock in a calibrated manner based on market conditions. Bulk supplies are released through mandis, while targeted retail sales are undertaken in major consumption centres whenever necessary.
“Consistent with the strategy adopted in previous years, onions are being released from buffer stock in a calibrated manner based on continuous monitoring of prices and market conditions across states during the current year as well,” government sources said.
The timing, quantity and destination of these releases are decided according to prevailing market conditions and the requirements identified in major consumption centres.
The government is also using improved transportation arrangements to move onions from surplus areas to regions where demand is higher. One such initiative is Kanda Express, which uses railway rakes to transport large quantities of onions more efficiently across the country.
Launched in 2024-25, the initiative has been expanded significantly. During 2024-25, 14 railway rakes transported nearly 12,000 MT of buffer-stock onions to five cities. In 2025-26, the operation was scaled up, with 86 railway rakes carrying around 88,000 MT of onions to 16 major cities.
The latest round of transportation and disposal of onions from Nashik to key consumption centres began on August 24. The initial destinations include Chennai, Madurai, Delhi, Kochi and Guwahati. More cities may be added depending on market requirements.
The government said it will continue to monitor onion prices, arrivals and availability across states and take additional measures wherever required to maintain adequate supplies and prevent undue price volatility.
The move is particularly significant as the August-September period traditionally brings greater uncertainty to onion markets. By combining buffer-stock releases with faster transportation from major producing regions such as Nashik, the government aims to ensure that shortages in individual markets do not translate into a sharp nationwide rise in prices.
With inputs from IANS