Centre Begins Discounted Onion Sales in Delhi-NCR at ₹35/Kg to Stabilize Prices

The Central government has initiated the sale of subsidized onions at ₹35 per kg in the National Capital Region (NCR) to curb rising retail prices. Consumer Affairs Secretary Nidhi Khare announced the launch on Thursday, noting that similar discounted sales will soon commence in cities such as Lucknow, Chandigarh, and Ludhiana where retail rates have remained elevated.

Government data indicates that retail onion prices in Delhi stood at ₹62 per kg, reflecting a nearly twofold increase over the past six months. Similar upward price trends have been observed across multiple states, including a 32 percent increase in Delhi, 46 percent in Punjab, 39 percent in Uttar Pradesh, 50 percent in Odisha, 45 percent in Maharashtra, 29 percent in Madhya Pradesh, 36 percent in Karnataka, and 30 percent in Rajasthan over a one-month period.

The Secretary attributed the price rise to profiteering by traders attempting to create artificial scarcity, emphasizing that overall availability remains sufficient and there is no requirement for imports. Furthermore, the government confirmed that there are no current plans to impose a ban on onion exports. India exported approximately 3.82 lakh tonnes of onions during the April-June 2026 period.

The retail distribution is being executed through three cooperatives—Nafed, NCCF, and Kendriya Bhandar—alongside Mother Dairy through its Safal outlets. Nafed is distributing onions across 39 locations, including 14 in the Ghaziabad and Gautam Buddha Nagar districts of Uttar Pradesh. NCCF is utilizing mobile vans and 8 retail outlets, while Kendriya Bhandar has deployed 102 retail stores across Delhi.

The onions currently being sold were transported via trucks from Nashik, where the Centre maintains its buffer stock. Additional supplies are expected via the first dedicated railway rake named “Kanda Express,” carrying 800 tonnes of onions, which is scheduled to reach Delhi. The Centre has procured 1.21 lakh tonnes of onions directly from farmers for this buffer stock.

For the 2026-27 period, the Central Warehousing Corporation (CWC) has been engaged as the storage agency for the first time. Officials noted that storage recovery—the usable quantity of onions remaining after accounting for weight loss and dryness over time—has improved to 72 percent, compared to 49 percent four years prior.

Total onion production for 2025-26 is estimated at 307.37 lakh tonnes, compared to 307.67 lakh tonnes in 2024-25. Field reports indicate that the area under cultivation for the current Kharif season is approximately 4 percent higher than the previous year. Maharashtra, Madhya Pradesh, Karnataka, and Rajasthan remain the key surplus producers supplying the domestic market.

"The government's market intervention through buffer stock releases highlights the importance of supply chain management and logistical efficiency in controlling retail price volatility. Utilizing cooperatives and dedicated freight like the Kanda Express demonstrates how direct supply-side measures can help stabilize essential commodities without resorting to heavy-duty trade restrictions. For businesses and agricultural enterprises, monitoring these policy adjustments is crucial for managing inventory and market expectations during festive demand cycles." — Dr. Shishir Gupta, Founder & CEO, StartupLanes