Govt ruled out restriction on onion exports, sale of ₹35/kg buffer stock begins

New Delhi: The government has ruled out fresh restrictions on onion exports as domestic availability remains comfortable, Consumer Affairs Minister Nidhi Khare said on Thursday, even as the Center has started selling onions in ₹35 per kg to avoid seasonal rise in retail prices.

After shutting down mobile onion vans for retail sale, Khare said the government had sufficient stocks to meet domestic demand and would rely on release of buffer stocks and market interventions rather than curbing exports.

Read also | The Center plans to release the onion buffer in September to cool the festive prices

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

Quick answers to key questions

•5 QUESTIONS

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

The release is aimed at preventing a seasonal spike in prices during festivals, when demand usually spikes, and to stabilize onion prices in the market.

Onion prices fell, with the average retail price falling 13% in two days due to the government’s vigorous market interventions and destocking.

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

The government is moving stockpiled onions via rail and road to major consumer centers and conducting targeted releases to keep prices stable during increased demand.

The government’s decision not to introduce new export restrictions comes after a series of changes to onion export policy over the past three years.

The Center has banned onion exports from December 8, 2023 to May 3, 2024 to ensure adequate domestic supply and maintain affordable prices. From 4 May 2024, it allowed exports subject to a minimum export price (MEP) of US$550 per tonne and 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.

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According to the latest data from the Ministry of Consumer Affairs, onion exports were around 3.82 LMT during April-June. Major destinations included Malaysia, Sri Lanka, United Arab Emirates and Nepal. As another indicator of comfortable domestic availability, the ministry cited export volumes.

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

With the festive season approaching, the government has initiated a calibrated and targeted release of onions from its buffer stocks to prevent a seasonal spike in prices. Onion prices usually rise during festivals like Onam, Ganesh Chaturthi, Durga Puja, Dussehra and Diwali due to higher demand and supply chain factors.

Retail sales at ₹35 per kg started through mobile vans and retail outlets of NCCF and NAFED as well as Safal and Kendriya Bhandar outlets in Delhi. The scheme 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 reach is not limited to Delhi-NCR. “The government is moving onions by rail as well as by road to major consumer centers including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar,” Khare said. The first Kanda Express of the current financial year is expected to arrive in Delhi on Friday.

Khare also warned against hoarding and black marketing of onions, saying the government would take action against those trying to create artificial shortages or profit from rising prices.

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

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Khare further said that prices of key pulses such as tur, gram, masur, urad and moong as well as staple vegetables such as tomato and potato remain stable and within a range. Khare also said that sugar prices have started cooling down and will soon come down to their original levels.