Government's major move on rising onion prices: Affordable onions from buffer stock to hit the market

Onion prices have once again brought tears to people's eyes and disrupted household budgets. Prices are surging rapidly across many parts of the country. To curb this rise, the government is preparing to release onions from its buffer stock into the market. The primary objective is to increase the supply of affordable onions in cities and regions where prices are high, thereby providing significant relief to the public.

How much have onion prices risen?

On Saturday, the retail price of onions reached approximately ₹42 per kilogram. This marks an increase of about 45% compared to last year and around 19% compared to last month. The government is concerned that if prices are not brought under control quickly, the situation could worsen in the coming days. In Delhi, onions were selling for around ₹65 per kilogram, while in Chennai, the price was approximately ₹58 per kilogram; essentially, onion prices are skyrocketing across different parts of the country.

Why is the government selling onions from the buffer stock?

The government maintains a buffer stock of essential food items to be utilized during market shortages or sudden price spikes. With onion prices having risen sharply, the government is now tapping into this reserve. Onions from the buffer stock will be dispatched to high-price areas, increasing market supply and helping to bring prices down. The government has stated that instead of releasing onions everywhere simultaneously, supplies will be sent to specific regions based on need; priority will be given to areas where prices are highest.

What is 'Kanda Express'?

'Kanda Express' was launched in October 2024. This is the special train that transports buffer stocks of affordable onions from Nashik, Maharashtra, to various destinations such as Delhi, Guwahati, and Lucknow. Preparations are underway to once again utilize the 'Kanda Express' rail service for onion transportation. Through this service, onions will be shipped from Nashik to cities like Delhi, Chennai, Kochi, and Guwahati—areas where onion prices have been reported to be high. This move will not only boost onion supplies but also help reduce the time and cost associated with long-distance transportation.

Will the buffer stock alone suffice?

The government is not relying solely on its buffer stock. Onion reserves are also being built in collaboration with farmers to meet demand in the coming months. In essence, the government aims to control current market price hikes while simultaneously preventing a potential onion shortage in the future.

Sugar prices have also risen.

It is not just onions; a surge in sugar prices is also being observed. According to media reports, the price of sugar rose to ₹62.50 per kilogram on Saturday, up from approximately ₹46 per kilogram just a month ago. Retail prices in Delhi and Mumbai have reached around ₹65 and ₹69 per kilogram, respectively.