As onion touches ₹62 per kg, government blames middlemen for price rise

The Union government on Thursday (August 27, 2026) blamed “black marketing, hoarding and profiteering” for the increasing price of onions across the country and said the essential vegetable will be made available for retail sale at a discounted price of ₹35 per kg through designated mobile vans in cities such as Delhi. On Thursday (August 27), the price for a kg of onion in the Delhi market was ₹62.

Also read | Centre hikes onion procurement price by 13%

The Consumer Affairs Ministry said the National Agricultural Cooperative Marketing Federation of India Limited (Nafed), and the National Cooperative Consumers’ Federation of India Limited (NCCF) will sell the onions through its retail stores and the Kendriya Bhandars under the price stabilisation measures.

Union Agriculture Minister Shivraj Singh Chouhan said middlemen are the reason for the increase in onion prices and the farmers should get a reasonable income while the consumers should get the product at a reasonable rate.

Farmers’ leader Rakesh Tikait had written to Prime Minister Narendra Modi and to Mr. Chouhan that onion farmers were getting a price as low as ₹1 per kg of onion and had demanded immediate government intervention. “This was the same case with potatoes too. The government should have asked Nafed and NCCF to procure onions from farmers at a rate of at least ₹10 per kg. Had they done this, such a situation would not have arisen,” Mr. Tikait told The Hindu.

Mr. Chouhan said the government had intervened and bought onions from farmers in Maharashtra when the prices crashed. “Now, farmers do not have onions with them as stocks have been sold from their end, and retail prices have touched ₹60 per kg. Are farmers getting the real price for their hard work? Do middlemen have the right to profiteer from farmers’ efforts? The government is taking action,” the Minister said addressing an event.

Union Consumer Affairs Secretary Nidhi Khare maintained that the prices have increased because of black marketing, hoarding and profiteering. Adding that there is adequate supply of onions to meet demand during the festive season, she said the Union government is not considering putting a ban on onion exports, as there is no problem of supply.

On Wednesday (August 26), the government said it had started a calibrated and targeted release of onions from the buffer stock to ensure adequate availability and moderate seasonal price pressures in the coming months. “The intervention is being undertaken through a hybrid model of transportation comprising railway rakes and road transport, with supplies being directed to major consumption centres based on prevailing market conditions and price trends,” it said.