Centre releases more onion from buffer to ease prices

A train load of onions from Nashik meant for distribution to the public via the fair price shop arrived at the Korrukkupet Goods Yard on Monday, August 31, 2026. | Photo Credit: RARU R As the prices of onion and sugar continued on the higher side for the second week ahead of the festive season, the Union Consumer Affairs Ministry said here on Tuesday (September 1, 2026) that it had started a “calibrated release” of onion buffer stocks using railway and road transport to major consumption centres to ensure adequate availability and moderation of seasonal price pressures.The Union government also reduced the stock holding limit for dealers from 4,000 quintals to 2,000 quintals, effective from September 15 till November 30 to ensure adequate availability of sugar in the domestic market and to prevent hoarding and speculative trading.The government said in a release that two “Kanda (onion) Express” consignments of 450 metric tonnes (MT) had been dispatched from Nashik, Maharashtra to Delhi and of these, 140 MT was distributed across Varanasi, Lucknow, Chandigarh and Amritsar. “The second rake, carrying 840 MT of onions, reached Chennai on August 31. The Government of Tamil Nadu plans to distribute these onions through the Public Distribution System against the requirement of one kg per card. The onions are likely to be distributed across various districts of Tamil Nadu...,” the release added.Simultaneously, around 1,000 MT of onions are being transported by road to major consumption centres, the Centre added. “Retail intervention efforts have expanded significantly across 19 cities, supported by the dispatch of over 30 trucks to ensure widespread availability,” the Union government said, adding that the release of onions from buffer stocks improved market availability and eased prices.Continuous availabilityOn sugar, the government added that under the amended stocking provisions, a sugar dealer should not hold any stock for a period exceeding 30 days from the date of receipt of such stock. “Do not keep sugar in stock, at any time and in any place throughout the country, in excess of 2,000 quintals. However, considering the specific market requirements of the region, the stock holding limit shall remain at 4,000 quintals for Kolkata and its extended metropolitan areas,” the release said. The measure was aimed at curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks. “It will facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices,” the Centre hoped. Published - September 01, 2026 10:46 pm IST