Amid a 59 per cent year-on-year (YoY) rise in the average retail price of onions to Rs 43.53/kg on August 24 from Rs 27.37/kg a year ago, the Centre has started making efforts to control it. On Monday, the retail price of high-quality onions rose to Rs 50 per kg in some markets. Amid this, the government has started moving bulk onion stocks through dedicated railway rakes – ‘Kanda Express’ – from Nashik in Maharashtra to major consuming centres. According to Consumer Affairs Secretary Nidhi Khare, this is part of efforts to augment supplies and check the seasonal rise in prices. According to information available, the first consignment will arrive in Delhi today.
Sources in central agencies also said that approximately 800 metric tons of onion from the buffer stock will be transported from Nashik to Delhi by rail on Tuesday to control retail prices.
According to Lasalgaon Agricultural Produce Market Committee officials, onion arrivals have declined from around 15,000 quintals to 9,000 quintals in the past three to four weeks.
The rakes are expected to reach other identified centres by Wednesday.
When was ‘Kanda Express’ started
The ‘Kanda Express‘ was first launched in 2024-25 and has since been scaled up considerably. It was started to enhance logistical efficiency for large-scale onion movement. The number of rakes under this initiative has increased significantly.
In 2024-25, 14 railway rakes carrying nearly 12,000 tonnes of onion buffer stock were dispatched to five cities. In 2025-26, this has expanded to 86 rakes carrying about 88,000 tonnes of onions to 16 major cities across the country.
The ‘Kanda Express’ takes buffer stock of onions maintained at Nasik in bulk and offloads it in both wholesale and retail markets in the select consuming centres.
Buffer stock of onions
Buffer stock of onions is a strategic reserve of the central government, primarily created to protect the market from sudden price surges in case of supply shortage. It is mainly procured through agencies like NAFED and NCCF under the Price Stabilisation Fund and is released in the market in a controlled manner during seasonal shortages or price spikes. According to officials, the government has a buffer stock of 1.21 lakh tonnes of onion for the current year, which is sufficient to meet the demand.
The government has stated that it continues to monitor prices, market arrivals and availability across states, and will undertake further interventions as required. The government believes that stable production, buffer stock availability and proactive market interventions are together expected to moderate seasonal price pressures.
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