Onion prices have risen sharply in recent weeks, prompting the government to step up supplies from its buffer stock through a special rail initiative aimed at cooling wholesale and retail prices.
The government has started transporting onions by rail from Nashik in Maharashtra to five major cities — Delhi, Chennai, Kochi, Madurai and Guwahati, under the ‘Kanda Express’ initiative.
As part of the latest intervention, over 800 tonnes of buffer-stock onions will be dispatched from Lasalgaon in Nashik to Delhi on Monday.
The immediate focus is to release large quantities of onions at major mandis so that wholesale prices come down. A sustained decline in wholesale rates could eventually translate into lower retail onion prices, particularly in Delhi-NCR.
, leading the government to intensify market intervention despite maintaining that overall availability remains comfortable.
Seasonal price movements in onions can put pressure on consumers as supplies from different crop cycles change. The Centre, however, said the country has sufficient onion stocks to meet domestic demand in the coming months.
The government is also relying on its onion buffer stock to intervene in the market whenever prices require action.
The ‘Kanda Express’ is being used to move onions from the major production hub of Nashik to large consumption centres across the country.
The rail shipments will cover five destinations which are Delhi, Chennai, Kochi, Madurai, and Guwahati.
The first major dispatch involves 840 tonnes of buffer-stock onions from Lasalgaon to Delhi.
The idea is to move bulk quantities directly to major mandis, increasing the availability of onions where prices are under pressure. By improving wholesale supply, the government hopes to moderate prices through the supply chain and eventually provide relief to consumers.
Despite the recent rise in onion prices, the Centre said there is no shortage of onions in the country.
According to the government’s estimates, onion production is expected to be around 307 lakh tonnes in 2025-26. This is broadly similar to the previous year’s production of 308 lakh tonnes.
This means the overall production outlook remains relatively stable, even as prices have risen in the market.
The Centre also has buffer stocks available, which can be released in a calibrated manner when required to manage price pressures.
The government’s immediate strategy is to increase the supply of onions in major wholesale markets.
The release of buffer-stock onions through the ‘Kanda Express’ is therefore aimed primarily at bringing down wholesale prices. If wholesale rates ease and the lower prices are passed through the supply chain, retail consumers could eventually see some relief.