Onion Prices Jump 59% Nationwide, Kanda Express Rushes Buffer Stocks To Major Cities

New Delhi: The Centre has begun transporting bulk onion stocks through dedicated 'Kanda Express' railway rakes from Nashik to major consumption centres as prices rise sharply across the country.

The consignments are expected to reach their destinations by Wednesday, Consumer Affairs Secretary Nidhi Khare said.

Retail Prices Jump 59 percent

The all-India average retail onion price climbed 59 percent year-on-year to Rs 43.53 per kilogram on August 24 from Rs 27.37 a year earlier.

The average wholesale price surged 68 percent to Rs 35.58 per kilogram from Rs 21.23 during the same period last year.

Among major cities, onions were selling at Rs 60 per kilogram in Chennai, compared with Rs 33 last year. Prices reached Rs 55 in Delhi against Rs 35 earlier and Rs 53 in Kolkata.

Five Centres Identified

Initial supplies will be sent to Chennai, Madurai, Delhi, Ernakulam and Guwahati. Destinations will be added depending on changing market requirements.

The onions will be released in wholesale and retail markets. NAFED and the National Cooperative Consumers’ Federation will sell the commodity at Rs 35 per kilogram.

Khare said the government was monitoring market movements and could take additional measures. She pointed to possible cartelisation and speculation, noting that Nashik mandi prices were ruling above Delhi prices.

Buffer Stock At 1.21 Lakh Tonnes

The Centre holds 1.21 lakh tonnes of onions in its buffer, which Khare said was sufficient to meet domestic demand.

The reserve, procured through NAFED and NCCF under the Price Stabilisation Fund, is released gradually when seasonal shortages or sharp price increases disrupt the market.

Supply Position Remains Comfortable

India’s onion production is estimated at 307.37 lakh tonnes in 2025-26, unchanged from 307.67 lakh tonnes in the previous year.

The ministry expects output, buffer availability and intervention to moderate prices while protecting consumer and farmer interests.

Onion prices rise during August and September because of festive demand, weather disruptions and supply-chain movements.

The government decides the timing, volume and destination of releases after monitoring prices, arrivals and availability across states.