Onion Prices Jump 59%, Govt Rolls Out ‘Kanda Express’ Trains to 5 Cities to Curb Rates

Onion prices have climbed sharply in recent weeks, prompting the Centre to intensify market intervention by releasing buffer stocks and transporting supplies to major consumption centres through a special rail initiative.

Under the ‘Kanda Express’ programme, onions are being transported from Nashik in Maharashtra to five major cities — Delhi, Chennai, Kochi, Madurai and Guwahati — with the aim of boosting supplies and bringing down prices.

As part of the latest operation, more than 800 tonnes of buffer-stock onions are being dispatched from Lasalgaon in Nashik to Delhi. The shipment is intended to increase supplies at major wholesale markets and ease pressure on mandi prices.

The intervention comes after onion prices rose 59% in recent weeks. While the government has acknowledged the price increase, it has maintained that overall onion availability remains adequate and there is no shortage in the country.

The Centre is hoping that increased arrivals at wholesale markets will push down mandi prices. If the decline is sustained and passed through the supply chain, consumers, particularly in Delhi-NCR, could eventually see lower retail prices.

What Is ‘Kanda Express’?

‘Kanda Express’ is a special rail-based supply initiative designed to transport onions in bulk from Nashik, one of the country’s major onion-producing regions, to key consumption centres.

The current rail network covers Delhi, Chennai, Kochi, Madurai and Guwahati. The first major consignment comprises 840 tonnes of buffer-stock onions being moved from Lasalgaon to Delhi.

By transporting large quantities directly to major mandis, the government aims to strengthen availability in markets facing price pressure. The increased wholesale supply is expected to moderate prices and improve the flow of onions through the distribution chain.

Centre Says Onion Availability Remains Adequate

Despite the recent surge in prices, the government has said onion supplies remain comfortable.

According to government estimates, onion production is expected to reach around 307 lakh tonnes in 2025-26, compared with approximately 308 lakh tonnes in the previous year. The broadly stable production outlook suggests that the recent price rise is not being driven by an overall shortage.

The Centre also maintains a buffer stock that can be released when market conditions warrant intervention. Authorities are now using these reserves to increase supplies in major wholesale markets.

The government’s immediate objective is to bring down wholesale onion prices through higher market arrivals. A sustained reduction in mandi rates could eventually translate into lower retail prices and provide relief to consumers.