Festive price pinch: Delhi moves to rein in soaring onion, sugar rates

Ahead of the festive season, Delhi has announced cheaper onion and sugar supplies amid rising prices. The government will procure onions from NAFED, sell sugar at Rs 35 per kg and crack down on hoarding. Onion and sugar prices have climbed due to weather-related losses, crop damage, festive demand and tightening supplies.

In Short

• Delhi govt to control onion and sugar prices ahead of festive season
• Onions to be procured from NAFED, sugar sold at Rs 35 per kg
• Raids planned against hoarding and black-marketing

Ahead of the festive season, the Delhi government has announced measures to keep onion and sugar prices in check amid rising rates. Chief Minister Rekha Gupta held an emergency meeting with Food Minister Manjinder Singh Sirsa and senior officials, following which the government decided to make cheaper onions and sugar available to consumers.

The Delhi government said that it will procure onions from NAFED and sell sugar at Rs 35 per kg. It will also conduct raids and take action against those involved in hoarding and black-marketing onions and sugar.

Onion prices are rising sharply across markets, with retail rates touching Rs 60 per kg in some places, even though the country has produced more onions than it needs.

The issue, according to the information available, is not a shortage of onions but heavy losses caused by unseasonal rain and rotting during storage.

The rise in onion prices has come alongside an increase in sugar prices ahead of the festive season. This follows red rot disease, often described as the ‘cancer’ of sugarcane, affecting sugarcane crops and pushing up sugar prices. Farmers are also questioning who is benefiting from the increase as consumers pay more.

In the case of onions, market reports suggest that consumers in some places are paying between Rs 70 and Rs 80 per kg, up from around Rs 50 earlier. Even with output exceeding requirement, weather-related damage and storage losses have put pressure on supplies and prices.

For sugar, the government’s average retail price rose from Rs 48.18 per kg on July 20 to Rs 55.70 on August 20, 2026. The government has attributed the increase to lower-than-expected production, festive demand, crop damage, tightening global supplies and market speculation.

Farmer organisations have alleged that traders and sections of the sugar industry are hoarding stocks and creating an artificial shortage.

The Delhi government's intervention comes as rising onion and sugar prices threaten to add to the financial burden on consumers ahead of the festive season. By ensuring cheaper supplies and cracking down on hoarding and black-marketing, the government aims to ease prices and prevent traders from exploiting the seasonal surge in demand.

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