India
oi-Madhuri Adnal
Onion prices have been rising for nearly three weeks, prompting the Centre to step up market intervention and move its buffer stock by rail to five major consumption centres.
Under the government’s ‘Kanda Express’ initiative, onions stored in Lasalgaon, Nashik, are being transported to Delhi, Chennai, Kochi, Madurai and Guwahati. The move is aimed at increasing supplies in major markets and easing pressure on prices.
To counter a 56% year-on-year onion price surge, the Centre’s ‘Kanda Express’ initiative uses rail transport from Lasalgaon buffer stock to key cities, selling onions in Delhi at Rs 35/kg to boost supply and calm prices.
The first consignment, carrying around 800 tonnes of onions, is being transported from Lasalgaon to Delhi and is scheduled to arrive on Wednesday.
Consumer Affairs Secretary Nidhi Khare said the onions will be sold in Delhi at a subsidised rate of Rs 35 per kg through Nafed, NCCF and Kendriya Bhandar outlets. Dedicated railway rakes are also being used to send buffer-stock onions to Chennai, Ernakulam, Madurai and Guwahati.
The rise has been shown n both retail and wholesale markets. The all-India average retail price reached Rs 44.72 per kg on August 25, up from Rs 34.80 per kg on July 25 – an increase of more than 28% in a month.
Compared with the same period last year, the increase is even sharper. The average retail price on August 25, 2025, was Rs 28.67 per kg, putting the current rate around 56% higher year-on-year.
Among major cities, Chennai recorded a retail price of Rs 60 per kg on Tuesday, compared with Rs 35 a year ago. Delhi was at Rs 55 per kg against Rs 33 last year, while Kolkata recorded Rs 60 compared with Rs 32.
Mumbai’s retail price stood at Rs 48 per kg, up from Rs 32 a year ago, while Ranchi recorded Rs 38 against Rs 25 during the same period last year.
Wholesale prices have also moved up considerably. Ministry data showed the average wholesale price at Rs 36.73 per kg on August 25, compared with Rs 22.54 per kg a year earlier. Wholesale prices have risen by around 33.5% over the past month.
The Kanda Express was introduced in 2024-25 to make it easier to move large quantities of buffer-stock onions from producing regions to major consumption centres.
During its first year, 14 railway rakes carrying nearly 12,000 tonnes of onions were sent to five cities.
The operation has since expanded. In 2025-26, the government has used 86 railway rakes to transport around 88,000 tonnes of onions to 16 major cities.
The latest shipments are intended to improve the availability of onions in markets where prices have come under pressure.
The onions being released are part of the Centre’s strategic reserve maintained under the Price Stabilisation Fund.
The government uses the buffer stock to intervene when market supplies tighten or prices rise sharply. Around 1.21 lakh tonnes of onion buffer stock has been maintained for 2026.
The government has nevertheless maintained that there is no overall shortage of onions.
According to its estimates, 2025-26 onion production is expected to reach 307.37 lakh tonnes, broadly comparable with 307.67 lakh tonnes recorded in the previous year.
