The Indian government has launched a program to sell onions at subsidized prices in retail markets to control inflation and maintain affordability. Sales in Delhi, Mumbai, and Ahmedabad have been set at US$0.29/kg (INR 24/kg) and will be extended to Chennai, Guwahati, and Kolkata.
Around 25 metric tons (mt) of buffer stock are being released through the National Agricultural Cooperative Marketing Federation of India (Nafed), National Cooperative Consumers' Federation of India (NCCF), and Kendriya Bhandar. The measure is intended to apply in locations where retail prices are above US$0.36/kg (INR 30/kg) and will remain in place until December.
According to government data, the national average retail price for onions was US$0.34/kg (INR 28/kg) on September 4. The government holds a buffer stock of 300,000 mt, procured in 2024-25 under the Price Stabilization Fund (PSF) scheme at an average price of US$0.18/kg (INR 15/kg).
Union Food Minister Pralhad Joshi said: "The government's priority is to keep food inflation under control, and various direct interventions through price stabilization measures have played an important role in bringing down inflation in recent months."
Industry data shows that overall retail inflation for July was 1.55 percent, the lowest in almost eight years. Onion production for the year is estimated at 30.7 million mt, an increase of about 27 percent compared with the previous year, according to Consumer Affairs Secretary Nidhi Khare. The higher output has limited price increases.
An export duty imposed in 2023 following reduced yields was lifted in April 2025, reopening global trade opportunities. Exports in July 2025 were reported at 106,000 mt and 109,000 mt in August, with strong demand recorded from Southeast Asia.
Source: Mintec/Expana