Onion Prices Soar, Centre Rolls Out 'Kanda Express' To Delhi, Chennai and Beyond To Cool Retail Rates

The Centre has launched fresh ‘Kanda Express’ railway rakes to move onion buffer stocks from Nashik to Chennai, Madurai, Delhi, Ernakulam and Guwahati as prices rise. Onions will be sold at Rs 35 per kg through NCCF and NAFED.

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Kanda Express to carry onions as prices rise across India

The Centre has begun moving bulk onion stocks from Nashik in Maharashtra to major consuming centres through dedicated railway rakes, informally called the ‘Kanda Express’, as it steps up efforts to increase supplies and contain the seasonal rise in prices.

As reported by news agency PTI, Consumer Affairs Secretary Nidhi Khare said the first consignments being loaded onto the railway rakes were expected to reach their destinations by Wednesday. The government will initially send onions to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with more cities likely to be added depending on market conditions.

The intervention comes as onion prices have risen sharply over the past year. According to Consumer Affairs Ministry data, the all-India average retail price stood at Rs 43.53 per kg on August 24, up 59% from Rs 27.37 per kg a year earlier. The average wholesale price rose 68% year-on-year to Rs 35.58 per kg.

Onions to be sold at Rs 35 per kg

The Centre is releasing onions from its buffer stock maintained in Nashik and transporting them in bulk by rail to areas where prices are relatively high.

Once the consignments reach their destinations, the onions will be supplied to both wholesale and retail markets. At the retail level, they will be sold at Rs 35 per kg through the National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED).

Retail prices in several major cities have already moved well above this level. On Monday, onions were selling at around Rs 60 per kg in Chennai, compared with Rs 33 per kg a year earlier. Prices stood at about Rs 55 per kg in Delhi, against Rs 35 last year, and Rs 53 per kg in Kolkata.

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Government flags possible speculation

Khare said the government was closely monitoring onion prices and would take further steps if required.

She also pointed to an unusual price situation in the market. According to her, mandi prices in Nashik were higher than those in Delhi, despite Nashik being one of the country's key onion-producing regions.

“Mandi prices in Nashik are ruling higher than Delhi, which should not be the case,” she said, adding that this indicated the possible role of cartelisation and speculation in the market.

The government will continue to monitor market arrivals, wholesale and retail prices, and onion availability across states before deciding on further interventions.

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What is the onion buffer stock?

The onion buffer stock is essentially the Centre's emergency reserve, created to help stabilise prices when supplies fall or markets witness sudden increases.

The stock is mainly procured through government agencies such as NAFED and NCCF under the Price Stabilisation Fund. During periods of shortage or unusually high prices, these onions are released into the market in a planned manner.

For the current year, the government has around 1.21 lakh tonnes of onion buffer stock, which Khare said is sufficient for market intervention.

The strategy is aimed at protecting consumers from sudden price spikes while also ensuring that farmers are not unfairly affected by aggressive market intervention.

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Supply outlook remains comfortable

Despite the recent increase in prices, the government has said that the overall supply position remains comfortable.

Onion production for 2025-26 is estimated at 307.37 lakh tonnes, almost unchanged from the previous year's estimated output of 307.67 lakh tonnes. The government believes that stable production, available buffer stocks and timely market intervention should help moderate seasonal price pressure in the coming months.

Onion prices often rise between August and September due to a combination of factors. These include weather-related disruptions, changes in market arrivals, storage losses, supply-chain movements and increased demand during the festive season.

The Centre has therefore adopted a system of releasing buffer stocks through wholesale mandis and targeted retail sales in cities where prices are rising sharply.

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Kanda Express network expands

The railway-based onion movement initiative has grown rapidly since its launch in 2024-25.

During 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onions were dispatched to five cities.

The programme expanded significantly in 2025-26, with 86 rakes transporting around 88,000 tonnes of onions to 16 major cities across the country.

By moving onions in bulk directly from major storage centres such as Nashik to consuming markets, the government hopes to reduce logistical delays and quickly increase availability where it is needed most.

The latest movement under the Kanda Express comes at a crucial time, with household budgets already feeling the impact of rising onion prices. Whether the fresh supplies are enough to bring down retail prices will become clearer once the consignments reach the five cities and begin entering wholesale and retail markets.

(With inputs from agencies)