Onion Prices Surge 59% in August; Centre Starts ‘Kanda Express’ Rakes
Special trains to move onions from Nashik to major cities as retail prices climb sharply
New Delhi: After the surge in sugar prices in India, onion prices have become a ‘headache’ for common households in the country as prices have been rising consistently in August this year. The rising onion prices, however, prompted the government to step up its corrective measures to keep supplies steady and prevent sharp price movements in the country.
As part of its measures, the Centre, starting Monday (August 24), has kicked off ‘Kanda Express’ — running special trains carrying onions from Nashik to major consumption centres, including Delhi, Chennai, Kochi and Guwahati and other cities as well as per requirement. The idea is to move onions from areas where supplies are available to cities where prices have shot up.
The ministry data, however, showed that the all-India average retail price of onion rose 59 per cent year-on-year to Rs 43.53/kg on August 24, from Rs 27.37/kg a year ago. “The average wholesale price was up 68 per cent at Rs 35.58/kg, against Rs 21.23/kg in the year-ago period. Among major cities, retail onion prices on Monday stood at Rs 60/kg in Chennai (Rs 33 a year ago), Rs 55/kg in Delhi (Rs 35) and Rs 53/kg in Kolkata,” the data showed.
Reacting to the rising onion prices, consumer affairs secretary Nidhi Khare said that the Centre has started moving bulk onion stocks through dedicated railway rakes, the ‘Kanda Express ’, from Nashik in Maharashtra to major consuming centres, as part of efforts to augment supplies and check the seasonal rise in prices. “Stocks currently being loaded onto these rakes are expected to reach the identified centres by Wednesday,” she said.
“Initially, the onion will be supplied to five major consumption centres, namely Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be included subsequently based on emerging market requirements. The buffer stock of onions maintained at Nasik is being moved in bulk through rail rakes and the supplies will be offloaded in both wholesale and retail markets in these select consuming centres,” she said.
Khare further said that the government is keeping a close watch on prices to take further steps. “Mandi prices in Nasik are running higher than Delhi, which should be the case. It means cartelisation and speculation are at work. Onion will be sold at Rs 35 per kg in the retail market through agencies NCCF and Nafed,” she added.
However, the sources said that the government is closely monitoring onion prices, market arrivals and availability across states to ensure adequate supplies and protect consumers from undue price volatility. “Onion availability is currently comfortable to meet domestic demand in the coming months, supported by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26, which is in line with the previous year’s production of 307.67 LMT,” the sources said.
The government officials claimed that onion prices usually see a seasonal rise during August and September. “Higher festive demand, weather conditions and supply-chain issues are among the factors that can affect prices during this period. To limit unnecessary price fluctuations, we are also releasing onions in controlled quantities from our buffer stock,” a government official said.
