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.