1 week ago
Centre Rushes Kanda Express Stocks as Onion Prices Surge
Onions have become much more expensive in India.
Official figures put the average retail price at Rs 43.53 per kilogram on August 24, although some reports cited about Rs 42.
Prices were especially high in cities such as Delhi and Chennai.
The government has started special trains called Kanda Express.
These trains carry onions from Nashik, where stocks are available, to cities where prices are higher.
The onions come from the government’s stored buffer supply.
Government agencies plan to sell some of them at Rs 35 per kilogram.
Officials say overall supplies should be enough, but they are watching the situation and may release more onions.
Official ministry data put the average retail onion price at Rs 43.53 per kg on August 24, up 59% year-on-year.
Other reports cited an average of about Rs 42 per kg, 45% higher than a year earlier and 19% above the previous month.
The Centre has begun sending buffer-stock onions by dedicated Kanda Express railway rakes from Nashik to major consumption centres.
Initial destinations include Chennai, Madurai, Delhi, Ernakulam, Kochi and Guwahati, with reports differing on the naming of Kochi and Ernakulam.
The government plans to sell onions at Rs 35 per kg through NCCF and NAFED while monitoring prices, arrivals and supplies.
- Who
- The central government, Consumer Affairs Secretary Nidhi Khare, and agencies including the National Cooperative Consumers' Federation and the National Agricultural Cooperative Marketing Federation of India are responding to rising onion prices.
- What
- The government has started moving buffer-stock onions by dedicated railway rakes and plans targeted sales to increase supplies and moderate prices.
- Where
- Onions are being moved from Nashik, Maharashtra, to major consumption centres including Chennai, Madurai, Delhi, Ernakulam, Kochi and Guwahati.
- When
- The Kanda Express operation began on Monday, August 24; stocks being loaded were expected to reach identified centres by Wednesday.
- Why
- The measures aim to address rising seasonal prices, tighter supplies in some markets and higher demand during August and September.
Government assessment
Market and consumer concerns
Adequacy of supply
Government assessment
Officials said onion availability is comfortable for coming months, supported by production broadly matching the previous year and available buffer stocks.
Market and consumer concerns
Other reports described lower output and tighter supplies in some markets, with retail prices reaching about Rs 58-65 per kg in Delhi and Chennai.
Reasons for rising prices
Government assessment
The government cited the usual August-September seasonal increase, festive demand, weather conditions, supply-chain issues and changing demand patterns.
Market and consumer concerns
Consumer-focused reports emphasized supply constraints and said a prolonged onion price increase could raise household expenses and contribute to food inflation.
Market behaviour
Government assessment
The government said it would monitor prices, arrivals and availability, release buffer stocks in calibrated quantities and add destinations as market needs emerge.
Market and consumer concerns
Nidhi Khare said Nashik mandi prices being higher than Delhi indicated that cartelisation and speculation were affecting the market.
Key facts
- Retail price
- Ministry data showed an all-India average of Rs 43.53 per kg on August 24, compared with Rs 27.37 a year earlier; other reports cited about Rs 42 per kg.
- Wholesale price
- The average wholesale price was Rs 35.58 per kg, up from Rs 21.23 a year earlier, according to ministry data.
- Reported city prices
- Reported August 24 prices included Rs 60 per kg in Chennai, Rs 55 in Delhi and Rs 53 in Kolkata; other reports cited about Rs 58 in Chennai and Rs 65 in Delhi.
- Planned retail price
- Buffer-stock onions are to be sold at Rs 35 per kg through the National Cooperative Consumers' Federation and the National Agricultural Cooperative Marketing Federation of India.
- Buffer stock
- The Centre holds 1.21 lakh tonnes of onions for the current year.
- Projected production
- Estimated 2025-26 production is 307.37 lakh tonnes, compared with 307.67 lakh tonnes the previous year.
- Kanda Express scale
- The initiative expanded from 14 rakes carrying nearly 12,000 tonnes in 2024-25 to 86 rakes carrying about 88,000 tonnes in 2025-26.
- Procurement price
- One report said the government raised its onion procurement price from Rs 1,875 to Rs 2,125 per quintal in July.
Quotes
Nidhi Khare
Consumer Affairs Secretary of the Government of India
“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. The buffer stock of onions maintained at Nasik 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.”
telegraphindia.com
deccanchronicle.com
thehansindia.com
“Mandi prices in Nasik are running higher than Delhi, which should be the case. It means cartelisation and speculation are at work. Onion will be sold at Rs 35 per kg in the retail market through agencies NCCF and Nafed.”
telegraphindia.com
deccanchronicle.com
Sources
Onion prices jump 59 per cent, Centre rushes 'Kanda Express' supplies to major markets to cool rates - Telegraph India
Onion Prices Surge 59% in August; Centre Starts ‘Kanda Express’ Rakes
Centre Rolls Out 'Kanda Express' As Onion Prices Rise 19% Within A Month
Onion prices jump 59% as Centre rushes buffer stocks by rail
Kanda Express starts rolling as government looks to cool rising onion prices
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