The Modi government launched ‘Kanda Express’ onion trains from Nashik on Monday to cool soaring retail prices across major cities. Average onion prices hit Rs 42 per kg on Saturday, up 45 percent from last year and 19 percent higher than last month. The buffer stock release targets Delhi, Chennai, Kochi and Guwahati where retail rates far exceed the national average. Rising onion and sugar prices have put heavy pressure on household budgets across India.
Onion Prices Spike in Metro Cities
Delhi recorded the highest retail price at Rs 65 per kg on Saturday, compared to Rs 35 last year. Chennai saw prices touch Rs 58 per kg against Rs 33 a year ago. Small towns in Uttar Pradesh like Kushinagar, Gorakhpur, Maharajganj, Deoria, Basti and Siddharthnagar are selling onions at Rs 50-55 per kg. Kerala and parts of Assam also report sustained high onion prices in local markets.
Supply Crunch Hits Maharashtra Crop
Maharashtra, the largest onion-producing state, faces a 5-7 percent drop in kharif onion output this season. This supply shortfall has pushed prices sharply higher across the country. Market experts say the production decline in the key growing region is the main driver of the current price surge. The government believes its buffer stock will be sufficient to stabilise the market in coming weeks through carefully timed releases.
NAFED and NCCF Step Up Procurement
State-run agencies NAFED and NCCF have procured about 1.2 lakh tonnes of onions as buffer stock this fiscal year. The purchase price was raised from Rs 1,270 per quintal in May to Rs 2,645 per quintal last week. This sharp increase aims to accelerate procurement while supporting farmers and ensuring affordable supplies for consumers. Both agencies have enough stock to meet demand in the months ahead, officials confirmed.
Government Plans Phased Market Release
Officials said the onions will be released in a phased manner at lower prices to counter deliberate price manipulation by some traders. The food ministry assured that sufficient stocks exist to meet demand in the coming months. A similar Kanda Express was operated in October 2024 to control prices during that period. The government is closely monitoring the situation and will take further steps if needed to keep onion prices in check.
