Delhi's subsidised onion demand high
Subsidized onions at ₹35/kg are selling fast in Delhi as retail prices near ₹48, after a delayed and partially stolen 450-tonne government stock delivery.
Demand for subsidised onions remains high in Delhi, with stocks supplied by the central government selling out quickly. Retailers told Hindustan Times on Friday that onions are retailing at around ₹48 per kilogram in the city.
The subsidised onions are being sold for ₹35 per kg through outlets run by NAFED, NCCF, Kendriya Bhandar, and Safal stores. At an NCCF outlet inside Rajiv Chowk Metro station, a stock of about 120kg sold out within four hours on Thursday. Another outlet in Vasant Kunj sold about 50kg in four hours after receiving stock on Friday noon.
Stolen Stock and Delivery Delays
A 450-tonne consignment of onions, the season's first delivery by dedicated 'Kanda Express' rail rake, reached Delhi around midnight on Friday after facing delays. Amid a reported lack of security at the Adarsh Nagar station, children from a nearby slum were seen taking onions from the railway rakes. E-rickshaw drivers at the site said the theft continued through the night, with the children possibly taking about 50-70 gunny bags by 7am.
People familiar with the developments said the delivered consignment included both Grade-A onions and onions procured under relaxed quality specifications. Consumer Affairs Secretary Nidhi Khare said the government was supplying quality onions to Delhi as part of its effort to bring down prices.
Procurement Challenges and Price Rises
The government's market intervention follows a difficult procurement season. Government agencies had procured only around 13,000 tonnes against a 200,000-tonne target by July 7, despite beginning purchases on May 15. This prompted the government to relax Grade-A specifications and repeatedly raise its minimum assured procurement price.
The procurement price was raised seven times this year, from ₹12.7 per kg at the start to ₹26.45 per kg in August. The government finally closed its procurement operation at 121,000 tonnes this month. The permissible bulb diameter for Grade-A onions was relaxed from 45-65 mm to 35-70 mm, with onions procured under these relaxed specs termed 'Grade-URS'.
Khare linked the recent price rise to black marketing, hoarding, and profiteering, maintaining that onion availability is adequate for domestic demand during the festive season. Onion production is estimated at 30.6 million tonnes in 2025-26, broadly unchanged from 30.7 million tonnes the previous year.
Buffer Stock Movements
The Centre has been moving buffer stocks to major consuming centres via dedicated rail rakes. In 2025-26, 86 such rakes ferried about 88,000 tonnes of onions to 16 cities. This is up from 14 rakes delivering 12,000 tonnes to five cities in 2024-25. The first Delhi-bound Kanda Express was initially planned to carry 800 tonnes, but only 450 tonnes arrived by rail, with about 360 tonnes arriving separately by truck.
