The Centre is closely monitoring onion prices, market arrivals, and availability across states to shield consumers from undue price volatility, government sources said on Monday, 24 August. Supplies are currently described as comfortable, backed by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26 — broadly in line with the previous year's output of 307.67 LMT.

Buffer Stocks and Market Intervention

In addition to adequate field production, buffer stocks are being released in a calibrated manner to prevent price spikes, sources said. 'Consistent with the strategy adopted in previous years, onions are being released from buffer stock in a calibrated manner based on continuous monitoring of prices and market conditions across states during the current year as well. The timing, quantity and destination of such releases are calibrated according to prevailing market conditions and identified requirements in consumption centres,' according to government sources.

The government has stated it remains committed to protecting consumer interests while keeping farmer interests at the centre of its price-stabilisation approach — a balance that has historically been difficult to maintain during the August–September lean season.

Why Prices Spike Every August

Onion prices have historically shown seasonal volatility from August–September onwards, driven by festive-season demand, weather disruptions, and supply-chain pressures. Timely bulk releases in mandis and targeted retail sales in major consumption centres are described by officials as critical tools for moderating this annual cycle. This year's intervention follows the same playbook, with the added scale of a significantly expanded logistics operation.

Kanda Express: Scale-Up in 2025-26

The Kanda Express initiative — which uses railway rakes for bulk onion transportation — has been substantially scaled up in 2025-26. Launched in 2024-25, the programme transported nearly 12,000 MT of onions via 14 railway rakes to five cities in its first year. In 2025-26, operations have expanded to 86 railway rakes carrying approximately 88,000 MT of onions to 16 major cities across the country — a more than sevenfold increase in volume.

Transportation from Nashik to key consumption centres commenced on 24 August. The initiative will initially cover Chennai, Madurai, Delhi, Kochi, and Guwahati, with additional destinations to be added based on emerging market requirements.

What Comes Next

The government has signalled it will undertake further interventions wherever required, with continuous monitoring of prices and market arrivals across states. The scale of the 2025-26 Kanda Express rollout — covering 16 cities versus five last year — suggests officials are anticipating sharper-than-usual seasonal pressure and are moving proactively rather than reactively. How effectively buffer releases translate into retail price relief will be the key metric to watch in the weeks ahead.