
India to Release Onion Buffer Stock in September to Stabilise Prices
17 August 2025, New Delhi: India’s Ministry of Consumer Affairs, Food & Public Distribution has confirmed plans to begin a phased release of the national onion buffer stock in September, aiming to keep market prices steady.
For 2024, the government has built a reserve of 300,000 tonnes of onions under its Price Stabilisation Scheme. Authorities noted that, unlike in previous years, the prices of staple vegetables such as onions, potatoes, and tomatoes have remained largely stable during this monsoon season. This stability is attributed to stronger crop yields in the 2024–25 cycle compared with the previous year.
According to the ministry, most food commodities tracked by the Department of Consumer Affairs are showing either flat or declining prices compared to last year. A notable example is the 14% year-on-year drop in the cost of a standard homemade thali in July 2025, reflecting a softening of food inflation trends.
The brief surge in tomato prices in Delhi at the end of July—reaching ₹85 per kg (US$1.02)—was linked to heavy rains in northern and north-western states, which disrupted supply lines. Officials emphasised that this was a short-term event, with prices already easing as daily inflows to Delhi’s Azadpur mandi recover.
To counteract temporary shortages, the National Cooperative Consumers’ Federation of India (NCCF) began procuring tomatoes from Azadpur mandi on August 4 and selling them at minimal margins through retail points and mobile vans in Delhi. Over 27,000 kg have been sold so far, at retail prices between ₹47 (US$0.56) and ₹60 (US$0.72) per kg.
Currently, tomato prices in Delhi average ₹73 per kg (US$0.88), while Chennai and Mumbai—where supply chains were unaffected—report lower prices at ₹50 (US$0.60) and ₹58 (US$0.70) per kg, respectively. The national average retail price now stands at ₹52 per kg (US$0.63), marginally below ₹54 per kg in 2024 and sharply lower than the ₹136 per kg peak recorded in 2023.
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