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Onion prices fall as new harvest arrives; government expands buffer stock sales to 123 cities

Public and Policy Editorial DeskUpdated 7 Oct 20263 min readSource: PIBHow we report

The Ministry of Consumer Affairs, Food and Public Distribution reported on 7 October 2026 that onion availability has improved significantly across India, with new harvest arrivals and government buffer stock releases bringing down prices in wholesale and retail markets. Mandi prices in Maharashtra have fallen 13 per cent in less than three weeks, while 126 cities have reported retail price drops of Rs 1 to Rs 21 per kilogram.

Key facts

  • Maharashtra mandi price fell from Rs 4,030 per quintal on 16 September to Rs 3,475 per quintal on 3 October (13 per cent decline)
  • 126 cities reported retail price reductions of Rs 1–21 per kg over two weeks
  • Kharif onion acreage estimated 5 per cent higher than previous year
  • Government has distributed over 2 lakh quintals of buffer stock through 8 Kanda Express trains and 467 trucks
  • Buffer stock sales expanded to 123 cities
  • Fresh arrivals from Karnataka, Andhra Pradesh and Rajasthan have started
  • No excessive rainfall forecast in key Kharif onion regions during harvest period

What is happening with the onion supply

India’s onion market is receiving supplies from three sources: fresh harvest from the Kharif (monsoon) season, stored stocks from earlier production, and deliberate releases from the government’s buffer stock. Major onion-producing states including Karnataka, Andhra Pradesh and Rajasthan have begun sending fresh Kharif onions to markets. The acreage planted for Kharif onions is about 5 per cent larger than last year, and growing conditions have been favourable across producing regions.

The India Meteorological Department has forecast that the harvesting period will not see excessive rainfall in key onion regions, which reduces the risk of crop damage from moisture and allows for smooth drying and transport of the harvest.

How prices are responding

The increase in market arrivals is already showing in price movements. In Maharashtra’s wholesale markets, the weighted average price per quintal dropped by nearly Rs 555 in just 17 days, indicating a meaningful easing of pressure on costs. This wholesale moderation is translating into relief at retail shops and vegetable markets across the country.

The price decline is not limited to one state or region. Major consuming states such as Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha, Andhra Pradesh, Bihar and West Bengal have all reported falling retail prices, suggesting that the supply improvement is nationwide rather than confined to pockets of the market.

Government buffer stock and distribution

To accelerate the arrival of onions in high-consumption centres, the Government of India is releasing onions from its strategic buffer stock. As of the release date, more than 2 lakh (200,000) quintals have been moved to consumers through 8 dedicated railway trains called Kanda Express and 467 trucks spread across 123 cities. Additional railway rakes are being deployed to increase the speed and volume of distribution.

This dual approach—supporting the natural increase in fresh harvest arrivals while simultaneously pushing government-held stocks into the market—is designed to ensure adequate supply reaches consumers in time for the forthcoming festive season, when demand for onions typically increases.

What this means for you

If you are a consumer, expect onion prices to stabilise and continue to moderate in the coming weeks as Kharif harvest volumes grow. The broad-based nature of price declines suggests this relief should be available across most of India, not just in specific cities or states.

Retailers and vendors who stock onions benefit from clearer and more stable pricing, which allows for better inventory planning. The government’s explicit commitment to maintaining adequate supplies provides reassurance that shortages are unlikely during the festive season.

Farmers selling fresh Kharif onions into the market should see orderly demand, though prices are unlikely to rise significantly given the expanded supply position.

What happens next

Kharif onion arrivals are expected to gain further momentum in the coming weeks. The Government will continue to release buffer stocks and deploy additional trains to ensure supplies reach consumption centres efficiently, especially as demand increases during the festive season.

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