Government Defends Onion Buffer Stock Quality, Cites CWC Storage and Improved Recovery Rates

The Department of Consumer Affairs has defended the quality of the Centre's onion buffer stock, stating that supplies remain in good condition. Consumer Affairs Secretary Nidhi Khare refuted reports claiming that 30 percent of the 1.21 lakh tonne government-maintained onion buffer had spoiled, asserting that no such damage has occurred.

For the first time this year, the responsibility for storing the buffer stock was entrusted to the Central Warehousing Corporation (CWC) rather than private traders. A third party has been assigned to assess the quality of the stock at regular intervals to ensure better shelf life.

Explaining the handling of the commodity, Khare noted that onions contain 90 percent water and typically retain their quality for three months post-harvest before gradually shrinking. The extent of spoilage depends heavily on ventilation and storage conditions. While a small portion of the stock was procured in May, the bulk was acquired in June and July. Consequently, this year's onion recovery rate is estimated at 72 percent, showing an improvement from 49 percent in 2022, 54 percent in 2023, and 63 percent in 2024. Procurement is handled through agencies such as Nafed and NCCF.

To manage distribution and stabilize prices, the buffer stock is being transported in bulk via 'Kanda Express', a dedicated rail rake, to cities including Delhi, Chennai, Madurai, Ernakulam, and Guwahati. A consignment of 453 tonnes arrived in Delhi recently, a move expected to boost supplies in the National Capital Region and help moderate retail rates within a week.

Mandi prices in Nashik have already begun easing following the intervention. Data indicated that the Nashik mandi price stood at Rs 44 per kg on August 24, which was higher than the retail price of Rs 25 per kg recorded in Delhi on the same day. Additionally, Rajasthan and Madhya Pradesh are gradually emerging as key suppliers to northern markets.

Regarding production outlooks, Khare stated that the kharif onion crop outlook is promising with the El Nino risk having passed. Concerns over the rabi crop have also been alleviated by improved irrigation and healthy water levels in key reservoirs. Domestic availability is projected to remain comfortable, supported by an estimated 2025-26 production of 307.37 lakh tonnes, which is on par with the previous year's 307.67 lakh tonnes.

Ministry data showed that retail onion prices in the capital rose to Rs 62 per kg, compared to Rs 33 per kg a year earlier. The all-India average retail price stood at Rs 46.58 per kg, while the wholesale rate was recorded at Rs 38.29 per kg.

"The integration of institutional warehousing like the CWC into agricultural buffer management highlights how strategic supply chain oversight can minimize post-harvest losses. For agribusinesses and logistics startups, adopting third-party quality assessments and specialized bulk transportation models like dedicated rail rakes presents a clear roadmap for improving efficiency, reducing wastage, and stabilizing market prices during seasonal volatility." — Dr. Shishir Gupta, Founder & CEO, StartupLanes