Onion Prices Rise: Government Starts Nashik Supply Drive to Keep Markets Stable

The Centre is stepping up measures to manage onion supplies as prices have moved higher in August, with a fresh transportation and distribution programme beginning from Nashik on August 24.

The initiative is designed to move onions to major consumption markets and ensure that adequate stocks remain available as demand rises during the late monsoon and festive season.

FIVE CITIES TO RECEIVE ONIONS INITIALLY

The first phase of the operation will send onions to five major markets — Chennai, Madurai, Delhi, Kochi and Guwahati.

The government said the network will be expanded to other cities depending on local demand and market conditions.

Despite the recent increase in prices, the Centre said domestic onion supplies are adequate and should be sufficient to meet consumption requirements over the coming months.

India's onion output for 2025-26 is estimated at approximately 307.37 lakh metric tonnes (LMT), broadly in line with the previous year's production of around 307.67 LMT.

WHY ONION PRICES TEND TO RISE IN AUGUST

The government noted that August and September typically witness upward pressure on onion prices.

Seasonal changes in supply, weather-related disruptions, transportation challenges and increased demand around the festive period can contribute to price movements.

To prevent temporary supply constraints from turning into steep price increases, the government is also releasing onions from its buffer reserves in a calibrated manner.

KANDA EXPRESS MOVED 88,000 TONNES LAST YEAR

The Centre has previously used rail transportation to move onions quickly from surplus-producing regions to high-demand markets.

During 2025-26, the 'Kanda Express' operation transported approximately 88,000 metric tonnes of onions to 16 major cities. The movement was carried out through 86 railway rakes.

The government said the current transportation and release plan will remain flexible, with additional destinations to be included wherever market conditions indicate a need for increased supplies.

The latest intervention is aimed at maintaining a steady flow of onions from production centres to major consumption hubs and limiting sharp fluctuations in retail prices during the seasonal period.