The Government has begun a calibrated release of onion buffer stocks through a hybrid transportation model comprising railway rakes (Kanda Express) and road transport to major consumption centres to ensure adequate availability and moderation of seasonal price pressures. The disposal of onions under the Price Stabilization Fund (PSF) buffer began on 24 August 2026 through NAFED and NCCF.

As part of this initiative, two Kanda Express consignments have been dispatched from Nashik. The first rake, carrying 450 MT of onions, reached Delhi in the late hours of 27 August 2026. Of this, 140 MT was subsequently distributed across Varanasi, Lucknow, Chandigarh and Amritsar, with the remaining quantity distributed across the Delhi-NCR region.

The second rake, carrying 840 MT of onions, reached Chennai on 31 August 2026. The State Government of Tamil Nadu plans to distribute these onions through the Public Distribution System (PDS) against the requirement of 1 kg per card. The onions are likely to be distributed across various districts of Tamil Nadu as per the proposed district-wise clustering:

Around 1,000 MT onions being moved by road

Simultaneously, around 1,000 MT of onions are being transported by road to major consumption centres, based on prevailing market conditions and price trends, with the aim of improving availability and moderating seasonal price pressures.

Retail intervention efforts have expanded significantly across 19 cities, supported by the dispatch of over 30 trucks to ensure widespread availability. These cities include Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur (Bihar), Sharif (Bihar), Bhubaneswar, Chennai, Madurai, Thrissur and Kochi. The retail initiative has also been launched in Lucknow by Shri B.L. Verma, Minister of State for M/o Consumer Affairs, Food and Public Distribution.

Retail onions available at Rs. 35 per kg

Retail sale of onions continues at Rs. 35 per kg through NCCF, NAFED, Kendriya Bhandar outlets and mobile vans, ensuring affordable availability for consumers. A total of approximately 669 MT of onions has been sold to date, comprising 223 MT through bulk channels via the e-NAM portal and similar online platforms at prevailing mandi prices, and 446 MT through retail channels across the country.

Increased availability supporting price moderation

The release of onions from buffer stocks has improved market availability and eased prices, particularly in centres where onion consignments have reached, such as Varanasi, Amritsar, Delhi and nearby markets. Prices have shown a decline from the day following the commencement of disposal, with increased supplies expected to further support price stability.

Timely payment to farmers

Further, Rs. 210 crores have been paid directly to around 3,400 farmers, ensuring timely payments. The Government remains committed to supporting onion farmers while ensuring adequate and affordable availability for consumers. The Government has also put in place robust security measures to prevent any leakages and address security concerns during the movement and disposal of large quantities of onions through railway rakes.

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RT/ ARC