Onion prices rise nearly 50%: Govt to run Kanda Express from today

The central government will start releasing its buffer stock of onions from Monday to control rising prices across the country. Trains carrying onions, called Kanda Express, will run from Nasik to Delhi, Chennai, Kochi and Guwahati, cities where retail onion prices are higher than the national average, a TOI report stated. The average retail price of onion rose to Rs 42 per kg on Saturday, up 45% from a year ago and 19% higher than last month.

The move comes as both onion and sugar prices climb in major cities, adding pressure on household budgets. The government has said adequate stock is available and onions will be released into the market at lower prices in phases.

Onion Prices Higher in Metro Cities

According to data from the consumer affairs department, onion sold at Rs 65 a kg in Delhi on Saturday, compared with Rs 35 a kg a year ago. In Chennai, the price stood at Rs 58 a kg against Rs 33 a kg last year. Onion prices are also elevated in parts of Kerala and Assam.

Sugar Prices Also Rising

Retail sugar prices continue to climb as well. Loose sugar sold at Rs 62.5 per kg on Saturday, 34% higher than a year ago and 28.5% higher than a month back, when it was priced at Rs 46 a kg. In Delhi, sugar sold at Rs 65 a kg, while in Mumbai it sold at Rs 69 a kg.

Government's Plan to Check Prices

Officials said onions will be released at lower prices in a calibrated manner, as some traders may be pushing up prices artificially. They added that sufficient stock is available with the government and with farmers to meet demand in the coming months. The food ministry said adequate sugar stock is also available. The government had last operated Kanda Express trains from Nasik to Delhi and other parts of the country to control prices in October 2024.

Fall in Onion Output Behind Price Rise

Market insiders said reports of a 5% to 7% decline in kharif onion output in Maharashtra, the largest onion-producing state, have contributed to the rise in prices.

Onion Buffer Stock and Procurement

Farmers' cooperatives NAFED and the National Cooperative Consumers' Federation (NCCF) have procured around 1.2 lakh tonnes of onion as buffer stock for the current fiscal year. In May, the two agencies had fixed the onion procurement price at Rs 1,270 per quintal. Last week, they revised this price to Rs 2,645 per quintal to speed up procurement.

Onion Production Outlook

Onion production in the 2025-26 crop year, which runs from July to June, is estimated at 307 lakh tonnes, according to the second advance estimate of the agriculture ministry. This is similar to the production recorded in the 2024-25 crop year.