Centre launches 'Kanda Express' as onion prices rise 45%
What's the story
The Indian government will launch "Kanda Express" from Monday, a special train service to transport onions from Maharashtra's buffer stock to major consumption centers. The move comes as retail prices of onions have surged by 45% year-on-year and over 19% month-on-month. The initiative aims to boost supply in high-price markets and prevent further price hikes for this essential kitchen staple.
Price surge
Onion prices hit ₹65 per kg in Delhi
Onion prices have skyrocketed in major Indian cities.
In Delhi, the price of onions was around ₹65 per kg on Saturday, a steep increase from ₹35 a year ago.
Similarly, in Chennai, onions were selling at ₹58 per kg against last year's ₹33.
The government has assured that there are sufficient stocks with both farmers and the government to meet demand for the coming months.
Train schedule
'Kanda Express' to transport onions to these cities
The "Kanda Express" will start its operations from Monday, transporting onions from Nashik to Delhi, Chennai, Kochi, and Guwahati.
These destinations have been chosen as their prices are higher than the national average.
The government hopes this special train service will help stabilize onion prices across India by ensuring an adequate supply of this essential vegetable in high-demand areas.
Production dip
Decline in kharif onion production
Maharashtra, India's largest onion-producing state, has reported a 5-7% decline in kharif onion production due to reduced acreage and delayed monsoon rains.
However, the agriculture ministry's second advance estimate projects total onion production for the 2025-26 crop year at 30.73 million tons, nearly unchanged from previous year's 30.76 million tons.
Procurement efforts
NAFED, NCCF procure onions to boost buffer stock
To bolster the buffer stock, the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation have procured around 1.2 lakh tons of onions this fiscal year.
The procurement price has also been revised from ₹1,270 per quintal in May to ₹2,645 per quintal last week.
This move is aimed at stabilizing onion prices amid market fluctuations and ensuring a steady supply for consumers.