Onion Buffer Stock Quality ‘Good’, Centre Launches Kanda Express To Rein In Prices As Delhi Rates Rise 88 Per Cent

Onion Buffer Stock Quality ‘Good’, Centre Launches Kanda Express To Rein In Prices As Delhi Rates Rise 88 Per Cent

The Centre has said its 1.21 lakh-tonne onion buffer stock is in good condition and rejected reports of major spoilage. A dedicated Kanda Express rail service is moving supplies to Delhi, Chennai, Madurai, Ernakulam and Guwahati. The move comes as Delhi’s retail onion price has risen 88% year-on-year to ₹62 per kg.

Vidhi Santosh MehtaUpdated: Friday, August 28, 2026, 05:34 PM IST
Onion Buffer Stock Quality ‘Good’, Centre Launches Kanda Express To Rein In Prices As Delhi Rates Rise 88 Per Cent
The Centre is moving onion buffer stocks by dedicated rail rake to major cities as retail prices remain elevated | AI Generated Representational Image

New Delhi, August 28, 2026: The Centre’s onion buffer stock remains in “good” condition, Consumer Affairs Secretary Nidhi Khare said on Friday, rejecting reports that a significant portion of the government-held stock had rotted.

Khare said the government has maintained an onion buffer of 1.21 lakh tonnes and, for the first time this year, entrusted its storage to the Central Warehousing Corporation (CWC) to improve shelf life. She rejected reports claiming that 30% of the stock had rotted. “Nothing of that kind has happened. Quality is good,” she said.

New Storage Strategy

In previous years, the onion buffer was stored with traders. This time, the government handed the responsibility to the CWC, while a third party has been assessing the quality of the stock at regular intervals.

Explaining the challenges involved in storing onions, Khare said the vegetable contains 90% water and retains its quality for about three months after harvest. It then begins shrinking every month as the water evaporates. The extent of spoilage depends on storage conditions and ventilation.

Recovery Rate Improves

Some onions were procured in May, but most of the buffer stock was purchased in June and July, which Khare said was one reason its quality remained good.

Onion recovery is estimated at 72% this year, compared with 49% in 2022, 54% in 2023 and 63% in 2024. The steady improvement suggests that storage and stock management have become more effective, an important factor when buffer stocks are used to stabilise prices.

The government procures onions through agencies such as the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers’ Federation of India (NCCF).

Kanda Express Hits The Tracks

The buffer stock is now being transported in bulk through the Kanda Express, a dedicated rail rake, to Delhi, Chennai, Madurai, Ernakulam and Guwahati. A consignment of 453 tonnes reached Delhi on Friday.

The additional supplies are expected to ease pressure on prices in Delhi-NCR and nearby cities, with the impact on retail rates likely to become visible within a week. Moving large quantities by rail could prove particularly useful if it helps supplies reach consumption centres quickly enough to curb sharp price movements.

Khare said mandi prices in Nashik have already started easing following the initiative. She pointed to an unusual price gap on August 24, when onions were selling at Rs 44 per kg in the Nashik mandi, despite a retail price of Rs 25 per kg in Delhi on the same day.

New Supply Centres Emerge

Rajasthan and Madhya Pradesh are also gradually emerging as major suppliers of onions to Delhi and other northern states, potentially broadening the supply base beyond traditional producing centres, PTI reports.

“There should not be a problem. The stock is good,” Khare said.

Crop Outlook Offers Relief

The outlook for the kharif onion crop is promising, according to Khare, with the El Nino scare now over. She also sought to ease concerns over the possible impact of El Nino on the rabi onion crop, saying irrigation has improved and water levels in key reservoirs remain healthy.

The positive crop outlook, along with the buffer stock, offers some reassurance for supplies in the coming months. However, retail prices remain elevated, making the speed at which additional stocks reach consumers crucial.

Onion Prices Jump 88% In Delhi

Retail onion prices in the national capital rose 88% to Rs 62 per kg on Thursday from Rs 33 per kg a year earlier, according to Consumer Affairs Ministry data. The all-India average retail price stood at Rs 46.58 per kg, while the wholesale rate was Rs 38.29 per kg on the same day.

Despite the sharp increase, Khare said onion availability remains comfortable enough to meet domestic demand in the coming months.

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Onion production in 2025-26 is estimated at 307.37 lakh tonnes, broadly on a par with the 307.67 lakh tonnes produced in the previous year. With overall production largely stable, the immediate challenge appears to be ensuring that available stocks reach markets efficiently enough to translate adequate supply into relief for consumers.

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