Government to Launch ‘Kanda Express’ as Onion Prices Surge 45% Year-on-Year

NEW DELHI – In a strategic move to stabilize the volatile kitchen staple market, the Indian government is set to deploy the “Kanda Express”—a specialized train network—starting this Monday to transport onions from Nashik to key consumption hubs including Delhi, Chennai, Kochi, and Guwahati.

The intervention comes as the national average price for onions hit ₹42 per kilogram on Saturday, reflecting a sharp 45% increase compared to the same period last year and a 19% hike over the previous month.

Addressing Regional Price Disparities

Market data from the Department of Consumer Affairs highlights the severity of the price surge. In the national capital, Delhi, onions are currently retailing at ₹65 per kilogram, nearly double the ₹35 price tag seen this time last year. Similarly, consumers in Chennai are facing prices of ₹58 per kg, compared to ₹33 last year. Elevated costs are also being reported across parts of Kerala and Assam.

Government officials believe that some of the price volatility may be driven by artificial inflation by traders. To counter this, the Centre plans to offload its buffer stock in a “calibrated manner” to cool the markets. Authorities have reassured the public that current stocks held by both the government and farmers are sufficient to meet the demand in the coming months.

Production Pressures and Mitigation

Market analysts attribute a portion of the price hike to a projected 5% to 7% decline in the kharif onion output in Maharashtra, the country’s leading producer. While total onion production for the 2025-26 crop year is estimated at 307 lakh tonnes—matching the figures from 2024-25—the timing of supply remains critical.

To bolster supply, the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation (NCCF) have procured approximately 1.2 lakh tonnes of onions as a buffer. In a bid to accelerate procurement, the agencies recently raised their purchase price from ₹1,270 per quintal in May to ₹2,645 per quintal last week.

This is not the first time the government has utilized rail infrastructure to combat food inflation; a similar “Kanda Express” initiative was successfully deployed in October 2024 to move essential supplies rapidly from Nashik to deficit regions.

Sugar Prices Also on the Rise

Beyond the rising selected keyword, the government is monitoring an upward trend in the retail price of sugar. On Saturday, loose sugar was retailing at an average of ₹62.5 per kg—a 34% increase from last year and a 28.5% jump from just a month ago. Prices in major metropolitan areas like Delhi and Mumbai have reached as high as ₹65 and ₹69 per kg, respectively. Despite these spikes, the Food Ministry maintains that there is an adequate national inventory of sugar to prevent supply shortages.