Government Expands Onion Buffer Stock Release Through Hybrid Transportation Model
The Ministry of Consumer Affairs, Food & Public Distribution has implemented a calibrated release of onion buffer stocks through a hybrid transportation model comprising railway rakes (Kanda Express) and road transport to major consumption centers. This initiative, operating under the Price Stabilization Fund (PSF) buffer, began on 24 August 2026 through NAFED and NCCF to ensure adequate availability and moderate seasonal price pressures.
Two Kanda Express consignments have been dispatched from Nashik, with the first rake carrying 450 MT of onions reaching Delhi on 27 August 2026. Of this quantity, 140 MT was distributed across Varanasi, Lucknow, Chandigarh, and Amritsar, while the remaining was distributed across the Delhi-NCR region. The second rake carried 840 MT of onions to Chennai on 31 August 2026, which the Tamil Nadu State Government plans to distribute through the Public Distribution System (PDS) at 1 kg per ration card across 16 district combinations covering all regions of the state.
Simultaneously, approximately 1,000 MT of onions are being transported by road to major consumption centers based on prevailing market conditions and price trends. Retail intervention has expanded significantly across 19 cities: Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur (Bihar), Sharif (Bihar), Bhubaneswar, Chennai, Madurai, Thrissur, and Kochi. This effort is supported by the dispatch of over 30 trucks to ensure widespread availability.
Retail sales continue at ₹35 per kg through NCCF, NAFED, and Kendriya Bhandar outlets and mobile vans. To date, approximately 669 MT of onions has been sold, 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.
The buffer stock release has already improved market availability and eased prices, particularly in centers where onion consignments have reached, such as Varanasi, Amritsar, Delhi, and nearby markets. Prices have shown a decline from the day following the commencement of disposal, with increased supplies expected to further support price stability.
The government has ensured timely payments to farmers, with ₹210 crores paid directly to approximately 3,400 farmers. Robust security measures have been implemented to prevent leakages and address security concerns during the movement and disposal of large quantities of onions through railway rakes.