Khare said onion production and availability remain sufficient, but the government is taking proactive measures to curb price volatility amid festive demand. From August 27, sales will be conducted through nine NCCF stores, 13 NAFED stores, 100 Kendriya Bhandar outlets, 40 NCCF mobile vans and 39 NAFED mobile vans.
The government is also using rail and road networks to move buffer onions from producing regions to major consumption centres. Under the Kanda Express initiative, nearly 12,000 MT was transported through 14 railway rakes to five cities in 2024-25, rising sharply to around 88,000 MT through 86 rakes across 16 cities in 2025-26. The Central Warehousing Corporation has also been brought in to support scientific storage and distribution.
The intervention aims to improve consumer access, moderate price pressures and ensure adequate onion supplies during the festive season.
Meanwhile, onion prices have surged 59% in a year, prompting the government to step up market intervention. The all-India average retail price rose to Rs 43.53 per kg on August 24 from Rs 27.37 a year ago, with prices in Delhi, Chennai and Kolkata higher.
According to the government, the onion supply is seen as adequate in the coming months, with 2025-26 production estimated at 307.37 lakh tonnes, almost flat from 307.67 lakh tonnes last year,. It has set a 2 lakh-tonne Rabi procurement target for the 2026-27 Price Stabilisation Fund buffer. Procurement by NAFED and NCCF began May 15, 2026, with about 1.21 lakh tonnes procured so far.