NEW DELHI: Onion prices have risen sharply across the country, with the all-India average retail price increasing 59% year-on-year to Rs 43.53 per kg on August 24.The action has prompted the Centre to step up supplies through its ‘Kanda Express’ initiative, news agency PTI reported.The average retail price stood at Rs 27.37 per kg a year ago, while the average wholesale price has increased 68% to Rs 35.58 per kg, from Rs 21.23 per kg during the same period last year.Among major cities, onion prices on Monday stood at Rs 60 per kg in Chennai, compared with Rs 33 a year ago; Rs 55 in Delhi, against Rs 35; and Rs 53 in Kolkata.
Centre steps in as prices surge
The Centre has started transporting bulk onion stocks from Nashik in Maharashtra to major consumption centres through dedicated railway rakes, called the Kanda Express.The said initiative has been rolled out to boost supplies and check the seasonal rise in prices, consumer affairs secretary Nidhi Khare said on Monday.The stocks currently being loaded are expected to reach the identified centres by Wednesday, PTI reported.Initially, onions will be supplied to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be added depending on market requirements.The buffer-stock onions will be offloaded in wholesale and retail markets in these centres and sold at Rs 35 per kg in retail markets through NCCF and NAFED.Khare said the government was closely monitoring prices and would take further steps if required.She also said mandi prices in Nashik were higher than those in Delhi, suggesting that cartelisation and speculation could be contributing to the price rise.
Government has 1.21 lakh tonnes in buffer
The Centre currently has 1.21 lakh tonnes of onion in its buffer stock, which is maintained as a strategic reserve to protect consumers from sharp price spikes during periods of tight supply.The stock is procured mainly through agencies such as NAFED and NCCF under the Price Stabilisation Fund and released in a calibrated manner during seasonal shortages or periods of rising prices.Khare said onion availability remains comfortable to meet domestic demand over the coming months, with estimated 2025-26 production at 307.37 lakh tonnes, broadly on a par with 307.67 lakh tonnes in the previous year.The government will continue to monitor prices, market arrivals and availability across states and undertake further interventions as required.
Why onion prices rise in August-September
Onion prices typically witness seasonal volatility during August-September, driven by festive demand, weather-related disruptions, supply-chain movements and changing demand patterns.To contain such price pressures, the government releases buffer stocks through bulk mandi sales and targeted retail sales in consumption centres, PTI reported.The timing, quantity and destination of these releases are decided based on continuous monitoring of prices and market conditions.
Kanda Express expands from 14 to 86 rakes
The Kanda Express initiative, aimed at improving logistical efficiency for large-scale onion movement, was launched in 2024-25 and has since expanded significantly.In 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onion buffer stock were dispatched to five cities.In 2025-26, the initiative expanded to 86 rakes carrying about 88,000 tonnes of onions to 16 major cities across the country.(With agency inputs)
