Onion prices are set to remain high in India due to drought impacting Karnataka's cultivation and reduced acreage. According to The Hindu BusinessLine, the total area under kharif onion has reached 1.30 lakh hectares as against 2.06 lakh hectares in the year-ago period. Onion farmers have planted the crop on 68,000 hectares as against 90,000 hectares year-ago in Karnataka, with the fall mainly due to water scarcity. The State government has already declared drought in 101 talukas out of 239 and more could be added to the list. In Rajasthan, sowing for late Kharif crop will start soon and may continue till first week of October as farmers have missed Kharif season, with onion acreage expected to reach up to 40,000 hectares this year due to high prices.
The Centre has significantly widened its discounted onion sale program to 19 cities across India, offering onions at ₹35 per kg as prices continue to rise following crop damage caused by recent rains. According to reports from The Times of India, Delhi is among the cities covered by the intervention, with the Centre set to provide 1,000 metric tonnes of onions to the capital. The onions will be sold to consumers at ₹35 per kg through fair price shops and mobile vans across all 13 districts, as announced by Delhi CM Rekha Gupta on Tuesday. The latest data shows that retail sale of onions continues at ₹35 per kg through NCCF, NAFED, Kendriya Bhandar outlets and mobile vans, ensuring affordable availability for consumers nationwide.
The intervention comes as onions are currently selling at around ₹50-60 per kg in Delhi's retail markets, representing a significant premium over the subsidized rate. As reported by The Times of India, the Delhi government has decided to procure onions and make them available to consumers at affordable prices to address the price gap. Currently, all-India retail prices of onion are between ₹23/kg and ₹87/kg with an average of ₹50/kg, according to consumer affairs ministry data. This represents a significant increase from ₹35/kg a month ago, with wholesale prices touching ₹40/kg now. The price surge is largely driven by a sharp decline in kharif onion cultivation across Karnataka this season, with experts noting there may be supply constraints till next rabi-grown onion arrives in market from next April.
The government has deployed one mobile van in each of Delhi's 13 districts to sell onions at ₹35 per kg, ensuring comprehensive coverage across the city. According to The Times of India, the mobile vans are specifically aimed at taking affordable onions to areas where people may find it difficult to access fair price shops. The retail initiative has expanded significantly across 19 cities, supported by the dispatch of over 30 trucks to ensure widespread availability. These cities include Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur (Bihar), Sharif (Bihar), Bhubaneswar, Chennai, Madurai, Thrissur and Kochi. The Delhi government said the move is aimed at increasing availability of affordable onions across the city, with the mobile vans moving across their respective districts to ensure accessibility for all residents.
The latest intervention follows a review meeting held on August 25 on the availability and prices of onions and sugar in Delhi under the chairmanship of Gupta. As reported by The Times of India, the meeting found that there was currently no shortage of onions or sugar in the capital. However, it was decided that if prices rose further, the Delhi government would ensure that residents did not have to bear the additional burden. The government has prepared to procure onions and sugar from the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and arrange availability at various locations across the capital. According to the Delhi Chief Minister's Office, the department has been asked to put in place arrangements to monitor the supply of onions received by Delhi, ensure that it reaches the market properly and prevent hoarding, along with taking necessary action where required.
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. As part of this initiative, two Kanda Express consignments have been dispatched from Nashik, with the first rake carrying 450 MT of onions reaching Delhi in 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. The disposal of onions under the Price Stabilization Fund (PSF) buffer began on 24 August 2026 through NAFED and NCCF. 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. Additionally, Rs 210 crores have been paid directly to around 3,400 farmers, ensuring timely payments while the government remains committed to supporting onion farmers.
