Consumer Affairs Secretary Nidhi Khare said the recent rise in onion prices was driven by black marketing, hoarding and profiteering, while asserting that the country has adequate supplies to meet domestic demand during the festive season.
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Khare said the government was not considering a ban on onion exports as there was no supply problem. India exported approximately 3.82 lakh tonnes of onions during April-June 2026.
She flagged off several small trucks carrying onions, marking the start of retail sales from the government’s buffer stock in the Capital.
The onions will be sold through three agencies — Nafed, NCCF and Kendriya Bhandar. Mother Dairy will also retail the onions through its Safal stores.
To speed up supplies to Delhi, the government is transporting bulk consignments through dedicated railway rakes christened “Kanda Express”. The first such rake, carrying 800 tonnes of onions, has already left Nashik and is expected to reach Delhi on Thursday.The Department of Consumer Affairs said on Wednesday, “Onion availability is comfortable to meet domestic demand in the coming months”.
Onion production is estimated at 307.37 lakh tonnes in 2025-26, marginally lower than 307.67 lakh tonnes in the previous year.
Also Read: Onion supply comfortable to meet domestic demand in coming months: Govt
“Robust production, availability of buffer stocks and proactive market interventions are expected to ensure adequate supplies and moderate seasonal price pressures in the coming months,” the department said.
The government has procured about 1.21 lakh tonnes of onions for its buffer stock. The Central Warehousing Corporation (CWC) has been engaged for the first time as the storage agency for the onion buffer during 2026-27.
The department said it was closely monitoring onion prices, arrivals and availability across states and would take further steps, if needed, to ensure adequate supplies and prevent unwarranted price increases.
It said onion prices typically rise during the festive season because of higher demand and supply-chain factors.
“With the onset of the festive season, including Onam, Ganesh Chaturthi, Durga Puja, Dussehra, Diwali and the wedding season, onion prices typically witness a seasonal uptick owing to higher demand and supply-chain factors,” the department said.
The government has accordingly started a calibrated and targeted release of onions from its buffer stock to ensure adequate supplies and keep prices in check.