Mumbai: The Centre will sell onions at a subsidised Rs 35 per kg in Delhi as it moves to curb a sharp seasonal increase in prices. The rate represents a discount of about 36 percent to Tuesday’s average retail price in the national capital.
Consumer Affairs Secretary Nidhi Khare said Nafed, NCCF and Kendriya Bhandar outlets would undertake the retail intervention. The first 'Kanda Express', carrying 800 tonnes of onions, is scheduled to reach Delhi on Wednesday.
Rail Supplies Widened
Dedicated railway rakes are also transporting bulk supplies to Chennai, Ernakulam, Madurai and Guwahati. The onions are being released from the Centre’s buffer stock maintained in Nashik, Maharashtra, to improve availability across major consuming markets.
India’s average retail onion price rose more than 28 percent within a month to Rs 44.72 per kg on August 25, from Rs 34.80 on July 25. The rate was Rs 28.67 a year earlier, marking a 56 percent annual increase.
On Tuesday, onions retailed at Rs 60 per kg in Chennai, Rs 55 in Delhi, Rs 60 in Kolkata, Rs 48 in Mumbai and Rs 38 in Ranchi. Corresponding year-earlier prices were Rs 35, Rs 33, Rs 32, Rs 32 and Rs 25, respectively.
Wholesale Pressure Persists
The average wholesale price climbed 63 percent year-on-year to Rs 36.73 per kg, from Rs 22.54, ministry data showed. It increased 33.5 percent over the past month.
The Kanda Express programme began in 2024-25 to improve efficiency in large-scale onion transportation. That year, 14 rakes moved nearly 12,000 tonnes of buffer stocks to five cities. The network expanded in 2025-26 to 86 rakes carrying about 88,000 tonnes to 16 major cities.
Supply Outlook Comfortable
The Centre has maintained an onion buffer of about 1.21 lakh tonnes for 2026 under the Price Stabilisation Fund scheme. It expects domestic availability to remain comfortable, supported by estimated 2025-26 production of 307.37 lakh tonnes, broadly matching the preceding year’s 307.67 lakh tonnes.
Prices generally rise from August to September because of festive demand, weather disruptions, supply-chain movements and changing consumption patterns.
