Onion Price Hike: Rising onion prices have once again created difficulties for the common people. A continuous upward trend in onion prices has been observed, with rates climbing rapidly. Onions are a kitchen staple that enhances the flavour of daily meals; however, in the market, they are selling for as much as ₹60–70 per kilogram in many places. The government claims to be selling onions from its buffer stock at just ₹35 per kilogram to keep inflation in check. Despite these efforts, consumers in the retail market still pay high prices for onions.
To control prices, the government began selling onions from its buffer stock on August 24. Agencies such as NCCF, NAFED, and Kendriya Bhandar, along with mobile vans, are using this buffer stock to sell onions. The ‘Kanda Express’ is also being used to transport onions from producing states to major cities.
Why aren’t onion prices dropping?
Market prices for onions have not come down, largely due to a supply gap. Currently, the market is in the transition period between the Rabi and Kharif crop seasons; stocks of the older Rabi onion are gradually depleting, while the new Kharif crop has not yet arrived in the market in sufficient quantities.
What is the government’s plan?
The government has set a target to procure 2 lakh tonnes of Rabi onions for the buffer stock for the 2026-27 period, of which approximately 1.21 lakh tonnes have already been purchased. To encourage farmers to sell their produce for the buffer stock, the procurement price has been raised from ₹18.75 to ₹21.25 per kilogram.
However, due to the time lag involved in transporting onions from procurement centres to wholesale markets (mandis) and retail outlets, the benefit of the government’s lower-priced onions is not being felt uniformly across all locations. While the government has arranged to sell onions from its buffer stock at ₹35 per kilogram, consumers in many areas are still paying between ₹60 and ₹70 per kilogram.
The arrival of the new Kharif crop is likely to influence onion prices in the near future. As the new harvest supply increases, we expect prices to ease.
Why are prices rising?
The government maintains that there is no shortage of onions in the country. Onion production for 2025-26 is projected at 307.37 lakh tonnes, compared to 307.67 lakh tonnes the previous year. According to government estimates from July, adequate stocks were available even in major producing states like Maharashtra, Madhya Pradesh, and Gujarat.