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The Centre sold about 4,000 tonnes of buffer onions across 17 cities in the first ten days of its subsidised retail intervention, announced on 6 September 2026.
The central onion buffer stock for 2026 stands at 1.21 lakh tonnes, and the onions are being sold at Rs 35 per kg in price-sensitive markets.
NCCF and NAFED handle the distribution, moving stock from producing states to consuming centres.
A dedicated rail rake named Kanda Express has carried bulk consignments to Delhi and Chennai, with a third rake being loaded for Guwahati.
The national average retail price of onions rose to Rs 50.79 per kg on 5 September 2026 from Rs 48.50 per kg on 28 August 2026, after untimely rains damaged part of the rabi crop.
The government buys a commodity when it is plentiful and cheap, stores it, and releases it into retail markets when supply tightens. The extra supply, sold below the market rate, pulls the prevailing price down.
Simple Analogy: Save water in the monsoon, open the tap in the dry season.
Apex cooperative marketing federation for agricultural produce; procures onions for the buffer and distributes them during market intervention
Apex consumer cooperative that retails subsidised buffer commodities through cooperative and public distribution channels
Runs the Price Stabilisation Fund and monitors daily retail prices of essential commodities; it directs the onion buffer operations
| Feature | Rabi onion | Kharif onion |
|---|---|---|
| Season of harvest | Winter-spring | Later in the year, arrivals from around October |
| Role in supply | Stored and consumed through the lean months; it is what the buffer draws on | Fresh arrivals that break a lean-season price spike |
| What hurt it in 2026 | Untimely rains damaged part of the crop | Arrival from mid-October 2026 expected to add supply |
GS Paper 3 > Economy > Buffer stocks, food security and price stabilisation
General Awareness > Indian Economy and Inflation
General Awareness > Economy Current Affairs
A reserve of a commodity held by the government to manage supply disruptions and price volatility
Government sale of stored stock at a subsidised rate to bring down prevailing retail prices
The dedicated rail rake used to move bulk onion consignments from producing states to consuming centres