New Delhi. The Central Government has taken a big step to provide relief from the rising prices of onion and to increase the supply in the market. The buffer stock of onion is being sent from Nashik, Maharashtra to the major consumption centers of the country through 'Kanda Express'. The government aims to curb the seasonal rise in onion prices by increasing supplies. Consumer Affairs Secretary Nidhi Khare said on Monday that onions are being loaded on railway racks and are expected to reach the designated consumption centers by Wednesday.
Average retail price reached Rs 43.53 per kg
According to government data, on August 24, the all-India average retail price of onion increased by 59 percent year-on-year to Rs 43.53 per kg. In the same period a year ago, it was Rs 27.37 per kg. At the same time, the average wholesale price of onion also increased by about 68 percent to Rs 35.58 per kg, whereas last year it was Rs 21.23 per kg.
Rs 55 in Delhi, Rs 60 per kg in Chennai
Onion prices are increasing in major cities also. On Monday, onion was sold at Rs 60 per kg in Chennai, Rs 55 per kg in Delhi and Rs 53 per kg in Kolkata.
Onion will reach these five cities first
According to Nidhi Khare, onion will be supplied in Chennai, Madurai, Delhi, Ernakulam and Guwahati in the initial phase. After this, according to the market need, other cities will also be included in this system. The buffer stock of onion kept in Nashik is being transported to these centers in large quantities through rail racks. Here the stock will be launched in both wholesale and retail markets.
Preparation to sell onion at Rs 35 per kg
The government plans to sell onions at the rate of Rs 35 per kg in the retail market through agencies like NCCF and NAFED. The government is constantly monitoring the prices and market situation. Nidhi Khare said that it is not a normal situation for the market prices in Nashik to be higher than Delhi. He also expressed fear of factionalism and speculation in the market regarding this difference in prices.
Government has buffer stock of 1.21 lakh tonnes
The central government has a buffer stock of 1.21 lakh tonnes of onion available for the current year. The government says this is enough to meet domestic demand and onion availability is expected to remain satisfactory in the coming months. Buffer stock of onion is maintained to provide relief to the market in times of shortage in supply or sudden rise in prices. It is purchased through agencies like NAFED and NCCF and is released in the market in a controlled manner as per the need.
Onion transportation increased through 'Kanda Express'
'Kanda Express' initiative for large scale transportation of onions was launched in the year 2024-25. After this, the system of delivering onions through rail was continuously expanded. In the financial year 2024-25, 14 rail racks carrying about 12 thousand tonnes of onions were sent to five cities. In the financial year 2025-26, this number increased to 86 rail racks, through which about 88 thousand tonnes of onion was transported to 16 big cities of the country.
Prices increase during festive season
According to the ministry, there is usually a seasonal increase in onion prices from August-September. There are reasons behind this like festive demand, weather related disruptions, supply chain and changes in demand. The government, by continuously monitoring the prices and market situation, decides to send the buffer stock to big mandis and selected consumption centres.
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