Onion Prices Surge 59%, Govt Deploys ‘Kanda Express’ Trains Across 5 Cities to Check Rates

Onion prices have surged 59% in recent weeks, prompting the Centre to step up market intervention by releasing buffer stocks and transporting onions to major consumption centres through the ‘Kanda Express’ rail initiative.

The government is sending onions from Nashik in Maharashtra to five cities — Delhi, Chennai, Kochi, Madurai and Guwahati — to increase market supplies and ease price pressures.

As part of the latest operation, 840 tonnes of buffer-stock onions are being transported from Lasalgaon in Nashik to Delhi. The consignment will be supplied to major mandis, with the immediate objective of bringing down wholesale prices.

The government expects lower wholesale rates to eventually translate into cheaper onions for consumers, particularly across Delhi-NCR, if the reduction is sustained through the supply chain.

What Is Kanda Express?

The ‘Kanda Express’ is a special rail initiative to move bulk quantities of onions from Nashik, a major production hub, to large consumption centres. The current shipments are headed to Delhi, Chennai, Kochi, Madurai and Guwahati. By moving buffer-stock onions directly to major markets, the government aims to improve availability and moderate wholesale prices.

Government Says No Onion Shortage

The Centre has said the recent price rise does not reflect an overall shortage of onions and maintained that domestic supplies remain adequate. Onion production is estimated at around 307 lakh tonnes in 2025-26, broadly in line with the 308 lakh tonnes produced in the previous year.

The government also has buffer stocks that can be released when required to manage price pressures. The latest intervention is focused on increasing arrivals in wholesale markets and preventing the recent price surge from putting further pressure on consumers.

If wholesale prices decline and the benefit is passed on through the distribution chain, retail onion prices could also ease in the coming weeks.