Govt Rules Out Onion Export Curbs, Begins ₹35/Kg Buffer-Stock Sales

(MENAFN- Live Mint) New Delhi: The government has ruled out fresh curbs on onion exports as domestic availability remains comfortable, consumer affairs secretary Nidhi Khare said on Thursday, even as the Centre began selling onions at ₹35 per kg to contain a seasonal rise in retail prices.

Speaking after flagging off mobile vans carrying onions for retail sale, Khare said the government had sufficient stocks to meet domestic demand and would rely on buffer-stock releases and market interventions rather than restricting exports.

Also Read | Centre plans September onion buffer release to cool festive prices

“Onion availability is comfortable to meet domestic demand in the coming months,” she said, citing estimated onion production of 307.37 lakh tonnes (LMT) in 2025-26, broadly in line with 307.67 LMT in the previous year.

Quick answers to key questions

.5 QUESTIONS1What is the current government policy on onion exports?⌵

The government has ruled out fresh curbs on onion exports, indicating that domestic availability remains comfortable and sufficient to meet demand without restrictions.

2Why is the government releasing buffer-stock onions at ₹35 per kg?⌵

The release aims to prevent sharp seasonal price increases during festivals, when demand typically spikes, and to stabilize onion prices in the market.

3How has the availability of onions impacted retail prices recently?⌵

Onion prices have seen a decline, with the average retail price falling by 13% over two days due to vigorous government market interventions and buffer stock releases.

4Should consumers be concerned about onion hoarding or black marketing?⌵

Yes, consumers should be wary as the government has warned against hoarding and black marketing, pledging to take action against those creating artificial shortages.

5What measures is the government taking to ensure adequate onion supplies during the festive season?⌵

The government is moving buffer-stock onions through rail and road transport to major consumption centers and conducting targeted releases to keep prices stable during heightened demand.

The government's decision not to impose fresh export restrictions comes after a series of changes to onion export policy over the past three years.

The Centre had prohibited onion exports from 8 December 2023 to 3 May 2024 to ensure adequate domestic supplies and keep prices affordable. From 4 May 2024, it allowed exports subject to a minimum export price (MEP) of $550 per tonne and a 40% export duty. The government subsequently removed the MEP and reduced the export duty to 20% from 13 September 2024, before withdrawing the remaining duty from 1 April 2025.

Also Read | Crop loss or diversion for ethanol: what's driving sugar prices?

Onion exports stood at approximately 3.82 LMT during April-June, according to the latest consumer affairs ministry data. Major destinations included Malaysia, Sri Lanka, the UAE and Nepal. The ministry cited the export volumes as another indication of comfortable domestic availability.

The latest export figure comes against a backdrop of strong domestic production. Estimated onion production for 2025-26 is 307.37 LMT, compared with 307.67 LMT in 2024-25. The government has also procured around 1.21 LMT of onions for the 2026-27 price stabilization fund buffer against a procurement target of 2 LMT.

With the festive season approaching, the government has started a calibrated and targeted release of onions from its buffer stock to prevent sharp seasonal price increases. Onion prices typically rise during festivals such as Onam, Ganesh Chaturthi, Durga Puja, Dussehra, and Diwali due to higher demand and supply chain factors.

Retail sales at ₹35 per kg have begun through NCCF and NAFED mobile vans and retail outlets, as well as Safal and Kendriya Bhandar outlets in Delhi. The programme currently includes 40 NCCF mobile vans, 50 NAFED mobile vans, 9 NCCF outlets, 13 NAFED outlets and around 100 Kendriya Bhandar outlets.

The government plans to sell discounted onions through mobile vans at 40 locations in Delhi, including CGO Complex, Krishi Bhawan, CR Park, Lajpat Nagar, INA Market, Narela, Rohini, Shalimar Bagh, Kirti Nagar, Bawana JJ Colony, and Prem Nagar, among others.

The intervention is not limited to Delhi-NCR.“The government is moving onions by both rail and road to major consumption centres, including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar,” said Khare. The first Kanda Express of the current financial year is expected to reach Delhi on Friday.

Khare also warned against hoarding and black marketing of onions, saying the government would take action against those attempting to create artificial scarcity or profit from a rise in prices.

The latest all-India average retail price of onion stood at ₹37.87 per kg on 26 August, according to the ministry. The corresponding average price of sugar was ₹53.60 per kg.

Also Read | RBI must read the tea leaves carefully as India's inflation readings diverge

Khare further said that prices of key pulses such as tur, gram, masur, urad and moong, as well as essential vegetables such as tomato and potato, remain stable and range-bound. Khare also said that sugar prices had started cooling and would come down to their original level soon.

MENAFN27082026007365015876ID1111588367