New Delhi, August 25: The central government is set to offer onions at a subsidized price of Rs 35 per kilogram in the national capital, aiming to mitigate rising retail costs. This initiative will be supported by an initial supply of 800 tonnes of the essential commodity, which is scheduled to arrive on Wednesday via the newly designated ‘Kanda Express’ railway service.
Information was available with The Chenab Times that Consumer Affairs Secretary Nidhi Khare announced on Tuesday that the sale of subsidized onions would be managed through outlets operated by Nafed, NCCF, and Kendriya Bhandar across Delhi. This measure comes as onion prices have seen a significant increase across the country.
In addition to Delhi, bulk quantities of onions are also being transported via dedicated railway rakes to four other major consumption centers: Chennai, Ernakulam, Madurai, and Guwahati. This buffer stock is being released from Nasik, Maharashtra, to stabilize market prices. The move is a direct response to a sharp surge in onion prices nationwide.
The all-India average retail price of onions has escalated by over 28 percent in the past month, reaching Rs 44.72 per kilogram on August 25, a considerable jump from Rs 34.80 per kilogram on July 25. Compared to the same day a year ago, prices have surged by approximately 56 percent, with the average retail price standing at Rs 28.67 per kilogram.
Retail prices in major cities reflect this upward trend. On Tuesday, onions were retailing at Rs 60 per kilogram in Chennai, a stark increase from Rs 35 per kilogram a year ago. Delhi’s prices stood at Rs 55 per kilogram, up from Rs 33. Kolkata reported prices of Rs 60 per kilogram (up from Rs 32), Mumbai at Rs 48 per kilogram (up from Rs 32), and Ranchi at Rs 38 per kilogram (up from Rs 25).
Data from the ministry further indicates a substantial rise in wholesale prices, which have increased by 63 percent to Rs 36.73 per kilogram on August 25, compared to Rs 22.54 per kilogram during the same period last year. Over the past month, wholesale prices have climbed by 33.5 percent.
The ‘Kanda Express’ initiative, launched in the 2024-25 fiscal year, is designed to enhance the logistical efficiency of large-scale onion transportation and has seen considerable expansion. During the 2024-25 fiscal year, 14 railway rakes carrying close to 12,000 tonnes of onion buffer stock were dispatched to five cities. This operation has been significantly scaled up in the current 2025-26 fiscal year, with 86 rakes transporting approximately 88,000 tonnes of onions to 16 major cities across India.
The onion buffer stock represents the Centre’s strategic reserve, primarily maintained to shield the market from price volatility during periods of supply constraints. The government manages these onion stocks in various producing states under the Price Stabilisation Fund scheme. As of the latest data, approximately 1.21 lakh tonnes of onion buffer stock has been earmarked for the year 2026.
The government’s assessment indicates that onion availability is expected to remain comfortable to meet domestic demand in the coming months. This outlook is supported by an estimated production of 307.37 lakh tonnes for the 2025-26 season, which is broadly in line with the 307.67 lakh tonnes produced in the preceding year.
Onion prices typically experience a seasonal surge between August and September. This increase is attributed to factors such as heightened festive demand, potential weather-related disruptions affecting supply chains, and shifts in consumption patterns.
The Chenab Times News Desk