The Centre is set to deploy the ‘Kanda Express’ from Monday to move onions from buffer stocks in Maharashtra to major consumption centres as retail prices climb sharply across several cities. The special rail service will transport onions from Nashik to Delhi, Chennai, Kochi and Guwahati, where prices have risen significantly, in an effort to improve supplies and contain further increases in the cost of the staple vegetable.

According to the Department of Consumer Affairs, the average retail price of onions reached around Rs 42 per kg on Saturday, marking a 45% increase from the same period last year and a rise of more than 19% over the previous month. The increase has been steeper in some major markets. Delhi recorded retail prices of around Rs 65 per kg, compared with Rs 35 a year ago, while onions in Chennai were selling for about Rs 58 per kg against Rs 33 last year. Consumer Affairs Secretary Nidhi Khare said the government was preparing to move onions from its buffer stocks by rail to markets experiencing elevated prices. She also said adequate stocks were available with both farmers and the government to meet demand in the coming months.

Maharashtra onion supply under pressure

The government intervention follows reports of a 5-7% decline in kharif onion production in Maharashtra, the country's largest onion-producing state. Lower acreage and delayed monsoon rains have been cited among the factors affecting output. However, the Agriculture Ministry's second advance estimate puts India's total onion production for the 2025-26 crop year at 30.73 million tonnes, broadly similar to the 30.76 million tonnes recorded in the previous year.

Wholesale prices have also increased considerably. At Lasalgaon, Maharashtra's major onion trading hub, prices have nearly doubled since June, reaching around Rs 3,800 per quintal from approximately Rs 2,000.

Government strengthens buffer stocks

To reinforce supplies, NAFED and the National Cooperative Consumers' Federation (NCCF) have procured around 0.12 million tonnes of onions during the current fiscal year. The procurement price has also been raised several times, from Rs 1,270 per quintal in May to Rs 2,645 per quintal last week.

The government plans to release the buffer stock in a calibrated manner, particularly in markets where retail prices are substantially higher than the national average. Moving supplies directly to major consumption centres is expected to help increase availability while limiting additional pressure on retail prices.

‘Kanda Express’ to target key markets

The Centre has used rail-based onion transportation previously to respond to regional price pressures. A similar ‘Kanda Express’ operation was run in October 2024, moving onions from Nashik to major consuming markets.

The latest operation comes as the government seeks to prevent the current price increase from spreading further. While production estimates indicate that overall onion availability remains relatively stable, differences in supply across markets have contributed to sharp price variations.

With sufficient stocks reportedly available with farmers and government agencies, the immediate focus will be on moving onions to high-price markets and improving availability. The effectiveness of the rail shipments will depend on how quickly the additional supply reaches consumers and whether wholesale prices begin to ease in the coming weeks.

Preparing a home-cooked meal became more expensive in June as rising prices of onions, tomatoes, cooking oil and LPG pushed up the cost of both vegetarian and non-vegetarian thalis across India, according to Crisil's latest monthly Roti Rice Rate (RRR) report.

The report shows that the average cost of a vegetarian thali increased by 5% year-on-year to ₹28.4 in June 2026, compared with ₹28.1 in the same month last year. On a monthly basis, the cost also rose by 4% over May.

Meanwhile, the average non-vegetarian thali became 6% costlier year-on-year and 3% more expensive month-on-month, largely due to higher chicken prices amid supply constraints.

Vegetable Prices Push Up Meal Costs

The increase in the cost of vegetarian meals was primarily driven by higher prices of essential kitchen ingredients.

According to the report, tomato prices jumped 31% year-on-year, rising from ₹32 per kg in June 2025 to ₹42 per kg in June 2026. The sharp increase has been attributed to delayed summer crop sowing and lower plantation caused by unusually high temperatures during February and March.

Onion prices also recorded a 2% annual increase, while on a monthly basis, tomatoes rose 17%, onions 8%, and potatoes 5%, adding further pressure on household food budgets.

Although potato prices remain 14% lower than last year due to the arrival of fresh rabi stocks, the decline has not been sufficient to offset increases in other key ingredients.

LPG and Edible Oil Remain Expensive

Crisil Intelligence Director Pushan Sharma said global geopolitical developments, particularly tensions involving the Middle East, have disrupted supply chains and increased the prices of edible oils and domestic LPG cylinders.

Both cooking oil and LPG prices are around 10% higher on a year-on-year basis, contributing significantly to the overall rise in meal preparation costs.

Chicken Supply Shortage Raises Non-Veg Thali Cost

The report noted that higher poultry prices were the main reason behind the increase in non-vegetarian meal costs.

Broiler chicken accounts for nearly 50% of the total cost of a non-vegetarian thali. Prices have risen by approximately 7% year-on-year, while monthly prices also moved up by about 2%.

Extreme summer temperatures reportedly increased bird mortality, reduced average bird weight and discouraged poultry farms from placing fresh chicks, resulting in lower market supply and higher retail prices.

Pulse Prices May Rise Further

The report also warns that prices of pulses could remain elevated in the coming months.

Low opening stocks of urad and moong, coupled with weather-related crop damage in Karnataka, Madhya Pradesh and Maharashtra, are expected to keep pulse prices under pressure.

Monsoon to Determine Future Food Inflation

Crisil believes onion and tomato prices could remain elevated through July and August due to delayed kharif sowing and seasonal supply constraints.

Heavy rainfall affecting transportation or further crop damage could tighten supplies even more during the peak monsoon period.

However, some relief may emerge from September onwards, when fresh kharif arrivals from southern and western India are expected to improve market supply. The extent of price moderation will depend on rainfall distribution, crop health and smooth transportation to wholesale markets.

With food inflation showing signs of persistence and kitchen staples becoming more expensive, households may continue to face higher grocery bills in the near term. Market observers say the progress of the southwest monsoon and agricultural output over the next few weeks will play a crucial role in determining food prices during the remainder of the season.