Onions at Rs 35/kg in Delhi: Govt Slashes Prices Amid Surge

The Centre will commence the retail sale of onions at a subsidised rate of Rs 35 per kg in Delhi starting Thursday. This intervention aims to stabilise prices that have escalated significantly across various cities nationwide.

Government Intervention to Stabilise Onion Prices

Union Food Minister Pralhad Joshi is set to inaugurate this subsidised sale. The initiative addresses a nationwide surge where onion prices have reached Rs 55-60 per kg in several major Indian cities.

The government is deploying a substantial buffer stock of 1.21 lakh tonne of onions, which has been strategically maintained across key producing states for the year 2026. This stock is crucial for market interventions during periods of price volatility.

Distribution Network and Logistics

The retail distribution will be spearheaded by three primary agencies: Nafed, the National Cooperative Consumers’ Federation of India (NCCF), and Kendriya Bhandar. These entities will manage the supply chain to ensure widespread availability.

The National Cooperative Consumers’ Federation of India (NCCF), holding a buffer stock of 62,000 tonnes, has begun transporting 400 tonnes of onions from Nashik, Maharashtra, to Delhi via the “Kanda Express.” Anice Joseph Chandra, Managing Director of NCCF, stated that sales would commence in Delhi and expand to the NCR region by the weekend.

• NCCF will retail through 100 Kendriya Bhandar stores.
• The agency is also in discussions with Mother Dairy to utilise its 300 outlets for distribution.
• Between 15 and 40 mobile vans will be deployed to further broaden reach.
• Supplies via rail rake are also planned for Chandigarh, Ludhiana, and Varanasi.

Similarly, Nafed, managing a buffer of less than 55,000 tonnes, will also facilitate onion sales in Delhi. Its distribution efforts will extend to other important centres such as Kochi and Guwahati.

The government is strategically employing dedicated railway rakes, also branded as “Kanda Express,” to expedite the movement of bulk onion consignments. The first such rake, carrying 800 tonnes, is already en route from Nashik to Delhi, ensuring swift supply to the capital.

• Other cities slated to receive supplies via dedicated rakes include Chennai, Ernakulam, Madurai, and Guwahati.

Understanding the Price Escalation

This intervention directly responds to a notable increase in onion prices across India. The all-India average retail price experienced a sharp rise over the past month and year.

• The all-India average retail price climbed 28% to Rs 44.72 per kg on August 25, 2026, from Rs 34.80 per kg a month prior.
• This represents a 56% jump compared to Rs 28.67 per kg recorded a year ago.
• In major metros, retail prices on Wednesday reached Rs 60 per kg in Chennai and Kolkata, and Rs 55 per kg in Delhi.
• Mumbai saw prices at Rs 48 per kg, while Ranchi recorded Rs 38 per kg.
• Wholesale prices also increased 63% year-on-year to Rs 36.73 per kg on August 25, alongside a 33.5% rise over the preceding month.

Officials attribute this surge primarily to the typical seasonal uptick observed between August and September. Contributing factors include festive demand, disruptions caused by weather, challenges in supply chain movements, and evolving consumption patterns nationwide.

Despite the current price surge, the government maintains that onion availability remains sufficient to meet domestic demand in the coming months. This confidence is supported by an estimated 2025-26 production of 307.37 lakh tonnes, which is comparable to the previous year’s output of 307.67 lakh tonnes.