Onion prices have been rising across several markets in August, prompting the government to step up the movement and release of stocks to major consumption centres. The Centre said it has begun measures to maintain adequate availability and prevent sudden price spikes as demand increases during the ongoing seasonal period. Transportation and the release of onions from Nashik are scheduled to begin from August 24, with the initial supplies being directed towards five major cities.
The first phase of the supply operation will cover Chennai, Madurai, Delhi, Kochi and Guwahati. These cities have been identified as important consumption centres where additional supplies can help ease pressure on local markets. The government said more destinations could be included in the programme depending on market conditions and requirements. The move is intended to strengthen supplies in areas experiencing higher demand and reduce the possibility of sharp fluctuations in retail prices.
According to the government, onion availability remains sufficient to meet domestic requirements in the coming months. Onion production during the 2025-26 agricultural year is estimated at around 307.37 lakh metric tonnes, compared with approximately 307.67 lakh metric tonnes in the previous year. The relatively stable production figures have provided some assurance about overall availability, even as prices have moved higher in some markets during August.
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The government explained that onion prices generally witness a seasonal increase during August and September. Several factors can contribute to this movement, including higher demand around the festive season, weather conditions and disruptions or challenges in the supply chain. Since onions are a widely consumed household staple, sudden increases in prices can have a direct impact on household budgets. Authorities are therefore using available stocks and transportation measures to improve market supplies.
As part of its efforts to control unnecessary price fluctuations, the government is also releasing onions from its buffer stock in a controlled manner. The objective is to ensure that additional quantities reach markets when required rather than allowing shortages or supply disruptions to push prices higher. Officials said the release and transportation programme will be adjusted according to demand and market conditions, with additional cities likely to receive supplies if the need arises.
The government also highlighted the role of the ‘Kanda Express’ initiative in moving onions to major consumption centres. During 2025-26, the programme transported around 88,000 metric tonnes of onions to 16 major cities using 86 railway rakes. The latest supply operation is expected to build on such efforts by using transportation and buffer stocks to maintain a steady flow of onions. Authorities said the programme will continue to be expanded where necessary to support markets and limit excessive price volatility.
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