Centre to Release Onion Buffer Stock From September to Curb Price Rise

New Delhi, 22nd July 2026: With onion prices witnessing a sharp rise across the country, the Central government is planning to release onions from its buffer stock beginning September to increase market supply and keep prices in check ahead of the festive and wedding season. The move is aimed at discouraging hoarding, improving availability and easing pressure on food inflation.

The government is expected to release the buffer stock in a phased manner between September and December, when the market largely depends on stored rabi onions before the arrival of the fresh kharif crop. The onions will be distributed through wholesale markets, state governments, cooperative agencies, subsidised retail outlets and mobile vans to ensure wider availability.

According to data from the Department of Consumer Affairs, the all-India average retail onion price has risen to ₹34.51 per kg, marking an increase of over 22% compared to a year ago. Wholesale prices have also surged by nearly 22% year-on-year, while retail prices in several cities have crossed ₹50 per kg. The increase has contributed to higher food inflation and rising household expenses.

To strengthen the buffer stock, the Centre has set a procurement target of 2 lakh tonnes of onions. Earlier this month, it increased the procurement price by 13% to ₹2,125 per quintal, up from ₹1,875 per quintal, to encourage farmers to sell onions for the Price Stabilisation Buffer.

Officials have stated that the intervention is intended to stabilise prices during the lean supply period and prevent speculative trading. The government has maintained that overall onion availability remains adequate, with sufficient stocks available in key producing states such as Maharashtra, Madhya Pradesh and Gujarat.