New Delhi: Onion prices have witnessed a steep rise across India, increasing concerns among consumers ahead of the festive season. The all-India average retail price of onions climbed 59% year-on-year to ₹43.53 per kg on August 24, prompting the Center to step up supply measures.
To control the price surge, the government has started transporting onion stocks from Nashik, Maharashtra, to major consumption centers through dedicated railway rakes under the 'Kanda Express' initiative.
Onion Rates Touch ₹60 Per Kg In Chennai, ₹55 In Delhi
According to government data, the average retail price of onions was ₹27.37 per kg during the same period last year. Wholesale prices have also increased significantly, rising 68% to ₹35.58 per kg compared with ₹21.23 per kg a year ago.
Among major cities, onion prices have reached ₹60 per kg in Chennai, ₹55 per kg in Delhi and ₹53 per kg in Kolkata.
'Kanda Express' To Boost Onion Supply
Consumer Affairs Secretary Nidhi Khare said the special railway service has been introduced to improve supply and control seasonal price fluctuations.
The onion stocks being transported from Nashik are expected to reach selected markets soon. Initially, supplies will be sent to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with more cities likely to be added depending on demand.
The buffer-stock onions will be released in wholesale and retail markets and sold at ₹35 per kg through government agencies including NCCF and NAFED.
Government Has 1.21 Lakh Tonnes Of Buffer Stock
The Center currently holds around 1.21 lakh tonnes of onions as a strategic reserve to manage sudden price increases caused by supply shortages. The stock is maintained under the Price Stabilization Fund and is released in a controlled manner whenever market prices rise sharply.
The government said onion production remains stable, with estimated output for 2025-26 at 307.37 lakh tonnes, almost similar to the previous year's production.
Why Onion Prices Rise During August-September
Onion prices usually see seasonal fluctuations during August and September due to factors such as weather disruptions, supply chain issues, festive demand and changing market conditions.
The government has said it will continue monitoring prices, arrivals and availability across states and take further steps if required.
Kanda Express Expands Nationwide Network
The Kanda Express initiative was introduced in 2024-25 to improve transportation of large onion stocks. It has expanded significantly, increasing from 14 railway rakes carrying nearly 12,000 tonnes of onions to 86 rakes transporting around 88,000 tonnes across 16 major cities in 2025-26.