Riding the 'Kanda Express': Government ships 800 tonnes of buffer onions to Delhi at steep 36% discount

The Central Government will supply onions at Rs 35 per kg in Delhi. This initiative aims to shield consumers from soaring retail prices and high market rates. The government is utilizing its buffer stock maintained in Maharashtra for this distribu...

Agencies

The initial 800-tonne shipment of subsidized onions rolls into the national capital this Wednesday to bring relief to consumers.

To shield consumers from soaring retail prices, the Central Government will supply onions in the national capital at Rs 35 per kg, a steep discount of roughly 36 per cent compared to current average market rates.

The Centre is mobilizing this intervention through its buffer stock maintained in Maharashtra, a major producing hub. Moving via the dedicated 'Kanda Express' rail service, the initial batch of 800 tonnes will arrive in Delhi on Wednesday.

In a social media post on Tuesday, Consumer Affairs Secretary Nidhi Khare shared, "Kanda Express is bringing about 800 tonnes of onion to Delhi to be sold at Rs 35 per kg at Nafed, NCCF and Kendriya Bhandar stores". She added that dedicated railway rakes are simultaneously shipping bulk shipments out of the Nasik reserve stock to four additional centers: Chennai, Ernakulam, Madurai, and Guwahati.


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Driven by festive demand, weather disruptions, and shifting supply dynamics, onion costs routinely climb around August and September. According to Department of Consumer Affairs figures, the nationwide average retail price jumped over 28 per cent in a single month, reaching Rs 44.72/kg on August 25, up from Rs 34.80 per kg on July 25. Year-on-year, this represents a 56 per cent spike from the Rs 28.67 per kg recorded on the same date last year.

Retail & wholesale price snapshot (as of Tuesday, August 25)
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  • Chennai: Rs 60 per kg (up from Rs 35 a year ago)
  • Kolkata: Rs 60 per kg (up from Rs 32)
  • Delhi: Rs 55 per kg (up from Rs 33)
  • Mumbai: Rs 48 per kg (up from Rs 32)
  • Ranchi: Rs 38 per kg (up from Rs 25)
All-India wholesale average: Rs 36.73 per kg (up 33.5 per cent in a month, and a 63 per cent surge from Rs 22.54 per kg last year)

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Logistical scaling & buffer reserves

The Centre manages onion reserves under the Price Stabilisation Fund to curb rapid market inflation during lean periods, holding approximately 1.21 lakh tonnes in buffer stock for 2026.
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To improve distribution efficiency, the government expanded its 'Kanda Express' bulk transport program:

  • 2024–25: 14 railway rakes transported nearly 12,000 tonnes to 5 cities.
  • 2025–26: Expanded to 86 rakes moving about 88,000 tonnes across 16 major urban centers.
Government officials maintain that domestic onion availability will comfortably satisfy demand in the coming months, anchored by an estimated 2025–26 output of 307.37 lakh tonnes, broadly on a par with the 307.67 lakh tonnes produced the previous year.
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