Onion prices: Food inflation has flared up again as retail onion prices surged by 59 per cent year-on-year to reach an average of Rs 43.53 per kg on August 24. According to data from the Consumer Affairs Ministry, sharp escalations across both wholesale and retail markets nationwide have severely stretched household budgets. In response to the spike, the Union Government has initiated the bulk transportation of buffer stocks via dedicated railway rakes from Nashik to high-demand consumption centers to augment supply and curb seasonal price volatility. Here is a comprehensive comparison on Onion prices in the country along with city-wise prices.
Onion Price Comparison (Year-on-Year)
| Market Category | Current Price (Aug 24) | Previous Year Price | Year-on-Year Change |
| All-India Retail Average | ₹43.53/kg | ₹27.37/kg | +59% |
| All-India Wholesale Average | ₹35.58/kg | ₹21.23/kg | +68% |
| Chennai Retail | ₹60.00/kg | ₹33.00/kg | +81.8% |
| Delhi Retail | ₹55.00/kg | ₹35.00/kg | +57.1% |
| Kolkata Retail | ₹53.00/kg | N/A | — |
What is Modi government planning on onion prices?
The government is closely monitoring onion prices, market arrivals and availability across states to ensure adequate supplies and protect consumers from undue price volatility, government sources were quoted as saying by a report carried by news agency said.
The report added the source as saying that onion availability is currently comfortable to meet domestic demand in the coming months, supported by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26 which is in line with the previous year’s production of 307.67 LMT.
What is the update on onion buffer stocks in India?
In addition, it was being indicated that buffer stocks are available for calibrated market intervention. The government remains committed to protecting consumer interests while keeping farmer interests at the centre of its price-stabilisation approach.
Onion prices have generally shown seasonal uptick and volatility from August -September onwards owing to increased festive season, weather conditions, supply-chain movements and demand conditions during this period.
Timely bulk release in mandis and targeted retail sales in major consumption centres play a critical role in augmenting supplies and moderating undue price volatility during the lean season.
During 2024-25, onion buffer stocks were transported through 14 railway rakes carrying nearly 12,000 MT of onions to five cities. In 2025-26, operations expanded substantially, with 86 railway rakes transporting around 88,000 MT of onions to 16 major cities across the country.
(With inputs from agencies)
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