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The Centre has launched dedicated Kanda Express onion trains from Nashik to major cities, releasing buffer stocks at ₹35/kg to curb a sharp seasonal rise in onion prices.
Kindly note the image has only been published for representational purposes. Photograph: ANI Photo
Key Points
- Initial dispatches of onions will target Chennai, Madurai, Delhi, Ernakulam and Guwahati, with more destinations to be added based on market demand.
- The all-India average retail price of onion has surged by 59 per cent year-on-year to ₹43.53/kg, prompting government intervention.
- The government maintains a buffer stock of 1.21 lakh tonnes of onion for the current year, deemed sufficient to meet domestic demand and moderate seasonal price pressures.
The Centre has started moving bulk onion stocks through dedicated railway rakes on the Kanda or Onion Express from Nashik in Maharashtra to major consuming centres, as part of efforts to augment supplies and check the seasonal rise in prices.
Stocks currently being loaded onto these rakes are expected to reach the identified centres by Wednesday, Consumer Affairs Secretary Nidhi Khare said.
The Kanda Express initiative, ‘aimed at enhancing logistical efficiency for large-scale onion movement’, was launched in 2024-2025 and has since been scaled up considerably.
In 2024-2025, 14 railway rakes carrying nearly 12,000 tonnes of onion buffer stock were dispatched to five cities.
In 2025-2026, this expanded to 86 rakes carrying about 88,000 tonnes of onions to 16 major cities across the country.
Targeting Key Consumption Hubs
“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.
Data maintained by the ministry shows the all-India average retail price of onion rose 59 per cent year-on-year to ₹43.53/kg on August 24, from ₹27.37/kg a year ago.
The average wholesale price was up 68 per cent at ₹35.58/kg, against ₹21.23/kg in the year-ago period.
Among major cities, retail onion prices on Monday stood at ₹60/kg in Chennai (₹33 a year ago), ₹55/kg in Delhi (₹35) and ₹53/kg in Kolkata.
The buffer stock of onions maintained at Nashik 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 ₹35 per kg in the retail market through agencies NCCF and Nafed, she added.
Monitoring Prices and Market Dynamics
Khare said the government is keeping a close watch on prices to take further steps.
“Mandi prices in Nashik are ruling higher than Delhi, which should not be the case. It means cartelisation and speculation are at work,” she noted.
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.
Ensuring Supply Stability
Khare said the government has a buffer stock of 1.21 lakh tonnes of onion for the current year, sufficient to meet the demand.
Onion availability, Khare addedm remains comfortable to meet domestic demand over the coming months, supported by estimated 2025-2026 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.
The government continues to monitor prices, market arrivals and availability across states, Khare said, 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.
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.
Feature Presentation: Rajesh Alva/Rediff
