Onion retail sale at ₹35/kg begins in Delhi; no shortage, says govt
Synopsis
With onion prices under pressure, the Centre has activated its buffer stock playbook — deploying NCCF and NAFED vans across 40 Delhi locations to sell onions at ₹35/kg. A proposal to rope in PDS shops could extend the relief to thousands more households, but the real test is whether the network scales fast enough to matter.
Key Takeaways
The central government launched retail onion sales at ₹35 per kg on 27 August from Krishi Bhawan, New Delhi .
Consumer Affairs Secretary Nidhi Khare flagged off the campaign, asserting there is no onion shortage in the country.
Onions are being sold through NCCF , NAFED , and Kendriya Bhandar outlets, mobile vans, e-commerce platforms, and organised retail chains.
Mobile vans are already operational at 40 locations across Delhi , with plans to expand the network further.
Discussions are underway to also supply subsidised onions through PDS shops in Delhi, which could benefit a significantly larger number of consumers.
Onion exports in the current year are reportedly at roughly the same level as last year , ruling out export-driven supply pressure.
The central government on Thursday, 27 August launched the retail sale of onions at ₹35 per kg from its price stabilisation buffer, asserting that there is no shortage of onions anywhere in the country. Consumer Affairs Secretary Nidhi Khare flagged off the distribution campaign from Krishi Bhawan in New Delhi, marking the government's latest market intervention to shield consumers from price volatility.
How the Distribution Is Being Rolled Out
Onions are being sold at the subsidised rate through outlets and mobile vans operated by the National Cooperative Exports Limited (NCCF), the National Agricultural Cooperative Marketing Federation of India (NAFED), and Kendriya Bhandars. NAFED Managing Director Deepak Agarwal said the mobile van network has already commenced operations at 40 locations across Delhi. Onions are also being made available through NAFED and NCCF stores, e-commerce platforms, and organised retail chains.
NCCF Managing Director Anice Joseph Chandra confirmed that her organisation began selling onions at its retail centres immediately after the Krishi Bhawan launch. 'Consumers can purchase onions at ₹35 per kg from NCCF outlets, particularly those located near metro stations,' she said. The retail network is set to be expanded further in the coming days.
What the Government Said on Supply and Prices
Secretary Khare stated that the government intervenes in the market periodically to keep onion prices in check, a practice it has followed annually when prices spike. 'There is neither any shortage in onion production nor in its availability across the country,' she noted. She added that onion exports this year are at roughly the same level as last year, indicating that external demand has not strained domestic supply.
PDS Shops May Also Join the Network
Discussions are reportedly underway between the central agencies and the Delhi government to extend the ₹35/kg onion scheme to Public Distribution System (PDS) shops. If approved, the move would significantly widen the reach of the initiative, bringing subsidised onions within reach of a much larger section of the capital's population.
Context: Why Onion Prices Matter
Onion prices in India have historically been a politically sensitive indicator, capable of influencing consumer sentiment and electoral outcomes. This is not the first time the Centre has deployed its buffer stock — built through procurement by NAFED and NCCF — to cool retail prices. This comes amid broader inflationary pressures on food commodities, making the intervention timely. The government's price stabilisation fund, which backs such buffer operations, has been used repeatedly in recent years as a first-response tool against vegetable price spikes. Whether the current rollout sustains long enough to meaningfully cap retail prices will depend on how quickly the distribution network scales beyond Delhi.
Point of View
And its deployment here is defensible — but the optics of launching it from Krishi Bhawan with a senior secretary in tow suggest the price signal is more political than purely logistical. The real question is scale: 40 mobile van locations in a city of 20 million is a start, not a solution. If the PDS integration proposal clears, that changes the calculus significantly. Historically, these interventions have succeeded in dampening panic buying but have rarely addressed the structural volatility in onion supply chains — thin storage infrastructure, erratic monsoon dependence, and export policy flip-flops. Until those are fixed, the buffer stock will remain a recurring band-aid rather than a cure.
NationPress
27 Aug 2026
Frequently Asked Questions
Why is the government selling onions at ₹35 per kg?
The government has activated its price stabilisation buffer to provide relief to consumers amid rising onion prices. Onions are being sold at ₹35 per kg through NCCF, NAFED, and Kendriya Bhandar outlets and mobile vans, as part of a periodic market intervention the Centre undertakes when retail prices spike.
Is there a shortage of onions in India right now?
The government has categorically stated there is no shortage. Consumer Affairs Secretary Nidhi Khare said on 27 August that there is neither a shortfall in onion production nor in its availability across the country, and that exports are at roughly the same level as last year.
Where can consumers in Delhi buy onions at ₹35 per kg?
Consumers can buy onions at the subsidised rate from NCCF outlets — particularly those near metro stations — as well as from NAFED stores, mobile vans operating at 40 locations across Delhi, e-commerce platforms, and organised retail chains. The network is being expanded further.
Will onions be available at PDS shops at the subsidised rate?
Discussions are reportedly underway between central agencies and the Delhi government to extend the ₹35/kg scheme to Public Distribution System shops. No final decision has been announced yet, but if implemented, it would significantly widen the reach of the initiative.
How does the government's onion buffer stock work?
The Centre builds a price stabilisation buffer by procuring onions through agencies like NAFED and NCCF during periods of surplus. When retail prices rise sharply, this stock is released into the market at subsidised rates to cool prices and prevent panic buying. The mechanism has been used repeatedly in recent years.
