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.
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.
