Onion Prices Rise Sharply Across India; Centre To Run ‘Kanda Express’

Onion prices have surged across several parts of India, putting fresh pressure on household budgets and prompting the Centre to release supplies from its buffer stock. The government will operate ‘Kanda Express’ trains from Nashik to Delhi, Chennai, Kochi and Guwahati to move onions to cities where retail prices have climbed sharply.

The move comes as the average retail price of onions has risen to around ₹42 per kg nationally, nearly 45% higher than the same period last year. Prices in some major cities have climbed considerably beyond the national average.

Onion Touches ₹65 Per Kg In Delhi

According to data from the Consumer Affairs Department, onions were selling at ₹65 per kg in Delhi on Saturday, compared with ₹35 per kg a year earlier.

In Chennai, the retail price has reached ₹58 per kg, up from ₹33 during the corresponding period last year. Prices have also risen significantly in parts of Kerala and Assam.

The government plans to release onions from its buffer stock in stages rather than flood the market with large quantities at once. Officials will assess market conditions before deciding the volume of each release.

The Centre also suspects that some traders may be attempting to push prices up artificially.

Why Are Onion Prices Rising?

A decline in kharif onion production in Maharashtra, the country’s largest onion-producing state, is among the factors being cited for the price rise.

Market participants estimate that kharif onion output in Maharashtra has fallen by around 5-7%. The government, however, maintains that the country has adequate stocks to meet demand in the coming months, with supplies held by both farmers and government agencies.

The overall production picture also does not indicate a major shortage. The Agriculture Ministry has estimated onion production at around 30.7 million tonnes in 2025-26, broadly similar to the previous year.

The difference in production and supply patterns between states, however, is contributing to price variations across markets.

NAFED, NCCF Buy 1.2 Lakh Tonnes

The Centre has tasked NAFED and the National Cooperative Consumers Federation (NCCF) with procuring onions for its buffer stock.

The two agencies have purchased around 1.2 lakh tonnes of onions during the current financial year. To encourage higher procurement, the government recently raised the purchase price to ₹2,645 per quintal.

The larger buffer is intended to give the government more flexibility to release stocks when retail prices begin rising sharply.

Kanda Express Was Also Used Last Year

This is not the first time the Centre has turned to rail transport to move onions from surplus-producing areas to high-price markets.

In October 2024, special Onion Express trains transported onions from Nashik to Delhi and other parts of the country as the government attempted to increase availability and moderate prices.

The latest Kanda Express operation will similarly focus on markets where onion prices have risen significantly.

Sugar Prices Add To Household Pressure

The rise in onion prices comes as consumers are also dealing with higher sugar prices.

Retail sugar prices stood at around ₹62.50 per kg on Saturday, compared with approximately ₹46 per kg a month earlier — an increase of about 28.5%.

Sugar is also around 34% more expensive than it was a year ago. In Delhi, the price has reached ₹65 per kg, while Mumbai has reported prices of around ₹69 per kg.

The Food Ministry, however, has maintained that the country has sufficient sugar stocks to meet domestic demand.