Onion prices up 59%, govt ramps up 'Kanda Express' supplies to cool market

New Delhi, The Centre has started moving bulk onion stocks through dedicated railway rakes - the 'Kanda Express' - from Nashik in Maharashtra to major consuming centres, as part of efforts to augment supplies and check the seasonal rise in prices, a Consumer Affairs Secretary Nidhi Khare said on Monday.

Stocks currently being loaded onto these rakes are expected to reach the identified centres by Wednesday, she said.

Prices up sharply


Data maintained by the ministry shows the all-India average retail price of onion rose 59 per cent year-on-year to Rs 43.53/kg on August 24, from Rs 27.37/kg a year ago. The average wholesale price was up 68 per cent at Rs 35.58/kg, against Rs 21.23/kg in the year-ago period.

Among major cities, retail onion prices on Monday stood at Rs 60/kg in Chennai (Rs 33 a year ago), Rs 55/kg in Delhi (Rs 35) and Rs 53/kg in Kolkata.

"Initially, the onion will be supplied to five major consumption centres, namely Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be included subsequently based on emerging market requirements," Khare told PTI.

The buffer stock of onions maintained at Nasik is being moved in bulk through rail rakes and the supplies will be offloaded in both wholesale and retail markets in these select consuming centres. Onion will be sold at Rs 35 per kg in the retail market through agencies NCCF and Nafed, she added.

Khare said the government is keeping a close watch on prices to take further steps.

"Mandi prices in Nasik are ruling higher than Delhi, which should be the case. It means cartelisation and speculation are at work," she noted.

Onion buffer stock

The onion buffer stock is the Centre's strategic reserve, built up primarily to cushion the market against price spikes when supplies tighten.

It is procured mainly through agencies such as NAFED and the NCCF under the Price Stabilisation Fund, and released into the market in a calibrated manner during periods of seasonal shortage or sharp price escalation.

Khare said the government has a buffer stock of 1.21 lakh tonnes of onion for the current year, sufficient to meet the demand.

Supply position 'comfortable'

Khare l said onion availability remains comfortable to meet domestic demand over the coming months, supported by estimated 2025-26 production of 307.37 lakh tonnes, 'broadly on a par with 307.67 lakh tonnes in the previous year.

Buffer stocks are also available for calibrated intervention, she added.

Khare said it continues to monitor prices, market arrivals and availability across states, and will undertake further interventions as required.

She noted that stable production, buffer stock availability and proactive market interventions are together expected to moderate seasonal price pressures, even as the price-stabilisation approach seeks to balance consumer and farmer interests.

Seasonal volatility a recurring trend

Onion prices typically see a seasonal uptick from August-September, on account of festive demand, weather-related disruptions, supply-chain movements and shifting demand patterns.

To counter this, the ministry undertakes calibrated release of buffer stocks "through bulk mandi releases and targeted retail sales in consumption centres", a strategy it said has been consistently followed in recent years.

The timing, quantity and destination of releases are decided based on continuous monitoring of prices and market conditions across States.

Kanda Express: From 14 rakes to 86

The Kanda Express initiative 'aimed at enhancing logistical efficiency for large-scale onion movement ' was launched in 2024-25 and has since been scaled up considerably.

In 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onion buffer stock were dispatched to five cities.

In 2025-26, this has expanded to 86 rakes carrying about 88,000 tonnes of onions to 16 major cities across the country.