Onion prices may rise further? 30% of Centre’s buffer stock damaged, Kanda Express sent to Delhi as kharif crop faces delay

Concerns are growing over onion supplies in India after around 30% of the Centre’s summer onion buffer stock has reportedly been damaged, raising fears of further price increases in the coming months.


Of the 1.2 lakh tonnes of onions procured this year by the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers’ Federation (NCCF), nearly 30% has already been lost to rotting and sprouting, according to a senior Nafed official quoted by The Times of India (TOI).


The official warned that spoilage could rise to as much as 40% this year, compared with the usual annual loss of around 20%.

Why are onion buffer stocks being damaged?

Unseasonal rainfall during the summer onion harvest affected the quality of the crop and reduced its storage life, the Nafed official said.

“The deterioration was largely caused by unseasonal rainfall during the harvest season, which hit onion quality and shortened shelf life, making long-term storage increasingly difficult,” the official told TOI.

The damage comes at a crucial time, with stored summer onions currently playing a major role in meeting market demand before the next major crop arrives.

Kanda Express carries 500 tonnes of onions to Delhi

The concerns over stocks come as the Centre steps up efforts to improve onion supplies in major cities.

The first special onion train, known as the Kanda Express, left Lasalgaon in Maharashtra for Delhi at around 3.30pm on Wednesday, carrying nearly 500 tonnes of onions from the Centre’s buffer stock.

The train had been scheduled to leave on Tuesday but was delayed by almost 24 hours because of grading and sorting operations.

Lasalgaon railway station manager Pritish Dubey said the train was expected to reach Delhi within 24 hours.

Onion to be sold at Rs 35 per kg in Delhi

The Centre has launched the rail movement of onions as part of its market intervention after retail prices climbed to around Rs 50-65 per kg in several cities.

The government is also moving onions by road through Nafed and NCCF.

Nafed dispatched 30 tonnes of onions to Delhi by truck on Tuesday night, while NCCF sent another 30-tonne consignment on Wednesday evening.

Under the Kanda Express initiative, onions transported to Delhi will be sold at a subsidised rate of Rs 35 per kg through Nafed, NCCF and Kendriya Bhandar outlets, according to the Union consumer affairs ministry.

Similar onion trains are reportedly being planned for Kolkata and Chennai, with consignments also expected to serve cities including Ernakulam, Madurai and Guwahati.

Centre falls short of onion procurement target

The Centre had set a target of procuring 2 lakh tonnes of summer onions for its buffer stock this year. However, Nafed and NCCF together managed to procure only around 1.20 lakh tonnes.

More than 90% of this year’s buffer stock is estimated to have come from the Nashik region, which generally contributes more than 80% of total procurement.

The situation has become more difficult as onions stored by farmers are also being released earlier than usual.

Farmers sell onions early amid spoilage concerns

Farmers traditionally begin releasing stored onions into the market from September. This year, however, many growers started selling their stocks in June and July to avoid losses caused by deterioration.

An agriculture department official told TOI that better wholesale prices also encouraged farmers to sell their produce in the open market instead of to procurement agencies.

In Nashik, India’s largest onion-producing district, storage facilities have a combined capacity of nearly 24 lakh tonnes. However, officials estimate that only about 25% of the stored stock remains with farmers.

Kharif onion crop faces major delay

The supply situation could become more difficult because the kharif onion crop has also been delayed.

Agriculture officials said kharif onion transplantation in Nashik has so far covered only around 370 hectares, against the district’s average kharif onion acreage of nearly 30,000 hectares.

Normally, around half of the planting work would have been completed by this point in the season. Current progress, however, is only around 1%.

Fresh kharif onions are now expected to start reaching markets around mid-November, with regular arrivals likely from early December.

Onion shortage feared in September and October

The delayed kharif crop could create a supply gap in October, particularly if existing summer onion stocks continue to decline.

Agriculture officials have warned that Nashik could face an onion shortage in September and October if stored supplies continue to fall at the current pace.

At present, markets are largely dependent on summer onions harvested during March and April. These onions usually have a shelf life of around six to seven months and are stored by farmers for gradual release throughout the year.

With no substantial fresh crop expected before kharif onions arrive, stored summer onions remain the main source of supply for wholesale and retail markets.

Traders have warned that heavy spoilage and the early depletion of stocks could put further pressure on onion prices over the coming months, particularly during the critical supply window before fresh kharif arrivals begin.


Inputs from TOI