The Indian government has started releasing onions from its buffer stock to maintain adequate availability and prevent seasonal price pressures. The release is being carried out through a hybrid model of railway rakes and road transport.
The Government of India has commenced calibrated and targeted release of onions from the buffer stock to ensure adequate availability and moderate seasonal price pressures in the coming months. This intervention is being undertaken through a hybrid model of transportation comprising railway rakes and road transport, with supplies being directed to major consumption centres based on prevailing market conditions and price trends.
Onion production for 2025-26 is estimated at 307.37 LMT, which is broadly in line with the previous year's production. Robust production, availability of buffer stocks, and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures.
To strengthen storage management and operational efficiency, the Central Warehousing Corporation (CWC) has been engaged as the storage agency for the PSF onion buffer during 2026-27. With the onset of the festive season, onion prices typically witness a seasonal uptick owing to higher demand and supply-chain factors.
To ensure adequate availability and prevent undue price volatility, the Government has commenced the calibrated release of buffer onions through a hybrid model of transportation. The quantity, coverage, and channels for release will be further widened based on prevailing market conditions and price trends. Retail sale of onions at ₹35 per kg is to be launched through various outlets.
The Kanda Express initiative has emerged as an effective logistics intervention for moving buffer onions from producing regions to consumption centres. During the previous financial year, onion buffer stocks were transported through 86 railway rakes carrying around 88,000 MT of onions to 16 cities across the country. In the current financial year, transportation of onion consignments has begun through Kanda Express from Nashik to New Delhi, with supplies also being moved through road transport to other major consumption centres.
Source:
Press Information Bureau
