Government expands onion buffer stock release to 19 cities to support supply and prices

New Delhi: The Government has expanded the release of onion buffer stocks across major consumption centres through a mix of railway and road transport to improve availability and help moderate seasonal price pressures.

The disposal of onions under the Price Stabilization Fund (PSF) buffer began on August 24 through NAFED and NCCF. The government is using a hybrid transportation model that includes railway consignments, known as Kanda Express, along with road movement.

Two Kanda Express consignments have so far been dispatched from Nashik.

The first rake, carrying 450 MT of onions, reached Delhi on August 27. Of this, 140 MT was distributed across Varanasi, Lucknow, Chandigarh and Amritsar, while the remaining quantity was supplied across Delhi-NCR.

The second rake, carrying 840 MT, reached Chennai on August 31. The Tamil Nadu government plans to distribute the onions through the Public Distribution System (PDS), based on a requirement of 1 kg per card.

Alongside railway transport, around 1,000 MT of onions is being moved by road to major consumption centres based on market conditions and price trends.

The retail intervention has now expanded to 19 cities, with more than 30 trucks deployed. The cities include Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur, Sharif, Bhubaneswar, Chennai, Madurai, Thrissur and Kochi.

The retail initiative has also been launched in Lucknow by Minister of State for Consumer Affairs, Food and Public Distribution Shri B.L. Verma.

Consumers can continue to purchase onions at Rs 35 per kg through NCCF, NAFED and Kendriya Bhandar outlets, as well as mobile vans.

Around 669 MT of onions has been sold so far. Of this, 223 MT was sold through bulk channels, including the e-NAM portal and other online platforms, while 446 MT was sold through retail channels.

The government said the release of buffer stocks has improved onion availability and helped ease prices in markets where consignments have reached, including Varanasi, Amritsar, Delhi and nearby centres.

Further supplies are expected to support price stability as seasonal demand remains a key factor in the market.

Alongside the consumer-focused measures, the government has also maintained its focus on timely payments to onion farmers.

Around Rs 210 crore has been paid directly to nearly 3,400 farmers. Security measures have also been put in place to prevent leakages and address security concerns during the movement and disposal of onions through railway rakes.

The calibrated release of buffer stocks is aimed at balancing consumer affordability with support for farmers while ensuring adequate onion availability across major markets.