1 week ago
Kanda Express Announced as Onion Prices Surge Nationwide
Onions have become much more expensive in India.
The government plans to use trains to send stored onions from Maharashtra to cities where prices are especially high.
This train service is called Kanda Express and is expected to start on Monday.
Officials say the government and farmers have enough onions for the coming months.
Some traders think prices rose because Maharashtra may produce fewer kharif onions.
Official estimates say total onion production is almost the same as last year.
A farmers’ group says growers are now receiving better prices after months of lower prices.
The government plans to release stored onions carefully to help control prices.
Farmers and officials therefore describe the supply situation somewhat differently.
The government will begin transporting buffer-stock onions by rail from Maharashtra to Delhi, Chennai, Kochi and Guwahati on Monday.
Average retail onion prices reached about Rs 42 per kg, up 45% from a year earlier and more than 19% in a month.
Delhi prices rose to about Rs 65 per kg, while Chennai prices reached Rs 58 per kg.
Trade sources linked the increase to a possible 5-7% decline in Maharashtra’s kharif onion output, while official estimates show overall production broadly unchanged.
NAFED and the National Cooperative Consumers’ Federation have procured about 0.12 million tonnes for the current fiscal year’s buffer stock.
- Who
- The Department of Consumer Affairs, Consumer Affairs Secretary Nidhi Khare, NAFED, the National Cooperative Consumers’ Federation of India, traders and onion growers are involved.
- What
- The government will use the proposed Kanda Express to transport buffer-stock onions by rail and may release them in high-price markets.
- Where
- Onions will be moved from buffer stocks in Maharashtra, particularly Nashik, to Delhi, Chennai, Kochi and Guwahati, with supplies also intended for key consuming centres across India.
- When
- The rail movement is scheduled to begin Monday; kharif onion arrivals are expected to begin in October.
- Why
- The action is intended to increase supplies and contain a sharp rise in retail onion prices.
Government and Official Assessment
Trade and Farmer Perspectives
Cause of rising prices
Government and Official Assessment
The government says stocks with both farmers and public agencies are sufficient for coming months and is preparing a controlled buffer-stock release to address high prices.
Trade and Farmer Perspectives
Trade sources attribute the rise partly to a possible 5-7% decline in Maharashtra’s kharif output because of lower acreage and delayed monsoon rains.
Overall supply outlook
Government and Official Assessment
The agriculture ministry’s second advance estimate puts 2025-26 onion production at 30.73 million tonnes, broadly unchanged from the previous year’s 30.76 million tonnes.
Trade and Farmer Perspectives
Bharat Dighole of the Maharashtra State Onion Growers Farmers Association says farmers in Maharashtra and Madhya Pradesh have ample stocks to meet supplies.
Effect of current prices
Government and Official Assessment
The government is intervening because retail prices have risen sharply and could increase further without additional supplies in expensive markets.
Trade and Farmer Perspectives
Bharat Dighole says farmers are now receiving remunerative prices after several months of lower market prices, with production costs estimated at Rs 2,000-2,200 per quintal.
Key facts
- Average retail price
- About Rs 42 per kg on Saturday; another report gave Rs 41.64 per kg.
- Year-on-year increase
- 45%.
- Monthly increase
- More than 19%.
- High-price cities
- Delhi was about Rs 65 per kg and Chennai Rs 58 per kg; Delhi-NCR prices crossed Rs 55 per kg.
- Buffer procurement
- About 0.12 million tonnes procured by NAFED and the National Cooperative Consumers’ Federation in the current fiscal year.
- Lasalgaon wholesale price
- About Rs 3,800 per quintal, compared with roughly Rs 2,000 per quintal in June 2026.
- Official production estimate
- 30.73 million tonnes for 2025-26, compared with 30.76 million tonnes in 2024-25.
- Revised procurement price
- Raised from Rs 1,270 per quintal in May to Rs 2,645 per quintal last week.
Quotes
Bharat Dighole
Founder-president of the Maharashtra State Onion Growers Farmers Association
“After a dip in market prices over the last several months, farmers are able to get remunerative prices currently, while there has been ample stock of onions with farmers across Maharashtra and Madhya Pradesh to meet supplies.”
financialexpress.com
“Looking at the recent rise in prices, we are preparing to start Kanda Express for the bulk transportation of onions by rail from buffer stocks kept in Maharashtra to key consuming centres across the country.”
financialexpress.com
Sources
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