The Government’s calibrated intervention in the onion market, backed by the extensive distribution network of cooperative institutions such as the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF), has helped ensure adequate supplies of the essential commodity while keeping consumer prices under check.
Buffer onions are currently being sold at Rs 35 per kg through retail outlets and mobile distribution points across Delhi-NCR. The intervention is aimed at moderating seasonal price pressures and ensuring that consumers continue to have access to onions at affordable rates. NAFED and NCCF are playing a frontline role in taking the government’s price-stabilisation measures directly to consumers.
The latest intervention also highlights the growing importance of cooperative institutions in managing supply shocks in essential agricultural commodities. With their extensive procurement, storage, transportation and retail networks, NAFED and NCCF have emerged as important operational arms of the Government’s market intervention strategy.
The logistics component has received a major boost through the Kanda Express initiative, which facilitates the movement of buffer onions from producing regions to major consumption centres. During 2024-25, nearly 12,000 metric tonnes of buffer onions were transported through 14 railway rakes to five cities. The initiative expanded dramatically in 2025-26, when 86 railway rakes moved around 88,000 MT of onions to 16 cities.
For the ongoing operation, onions are being transported through a combination of rail and road networks. The Central Warehousing Corporation has also been brought into the mechanism to strengthen scientific storage and efficient distribution of buffer stocks. This integrated system enables supplies to be redirected towards markets facing greater price pressure.
The current intervention builds on the experience gained by cooperative agencies during earlier periods of onion price volatility. In 2023, NAFED and NCCF were entrusted with large-scale procurement and disposal operations as onion prices came under pressure.
The Government subsequently expanded the onion buffer, while the two cooperatives operated retail outlets and mobile vans to sell onions at subsidised prices. In 2024, NAFED and NCCF procured about 6.4 lakh tonnes of onions for buffer stocking and intervention, while retail sales at Rs 35 per kg helped moderate prices in several major consumption centres.
The cooperative-led intervention has also demonstrated that market stabilisation can simultaneously address consumer and farmer interests. Procurement through NAFED and NCCF provides an assured market for farmers, while calibrated release of stocks during periods of tight availability protects consumers from sudden price spikes. In July 2026, the Government raised the procurement price for onions under the Price Stabilisation Buffer by 13% to Rs 2,125 per quintal, further strengthening the farmer-oriented dimension of the operation.
Onion prices have historically been vulnerable to seasonal production cycles, weather disruptions and the gap between the arrival of rabi and kharif crops. During the 2023-24 period, delayed kharif arrivals and global supply concerns contributed to sharp price pressures, prompting measures including buffer-stock releases and export restrictions. The Government has since progressively strengthened its buffer-based approach, with the onion buffer rising substantially from earlier levels.
The latest Rs 35-per-kg intervention and the expansion of Kanda Express underline a broader lesson: strong cooperative supply chains, backed by timely government intervention, can play a crucial role in protecting both farmers and consumers from the disruptive effects of volatile agricultural markets.
