The first Kanda Express carrying 453.65 tonnes of onion from Nashik reached Delhi on Friday morning, marking a significant milestone in the government's price stabilisation efforts. As reported by PTI, Consumer Affairs Secretary Nidhi Khare confirmed that the onion, stored at Nashik, will be sold at a subsidised rate of ₹35 per kg in Delhi-NCR. Some of the stock will also be sent to nearby cities such as Chandigarh, Ludhiana and Jammu. The Centre currently holds about 1.21 lakh tonnes of onion as buffer stock under the Price Stabilisation Fund. Khare announced that a Kanda Express rake bound for Chennai would be loaded on Friday, followed by rakes for three other destinations -- Madurai, Ernakulam and Guwahati in quick succession. The impact of the buffer stock release is expected to bring down retail onion prices in Delhi within a week.
The Centre has rejected reports that 30% of its 1.21 lakh-tonne onion buffer stock has rotted, with Consumer Affairs Secretary Nidhi Khare saying the quality remains 'good'. As reported by PTI, unlike previous years, when the onion buffer was stored with traders, the responsibility this time was entrusted to the Central Warehousing Corporation (CWC), with a third party assessing the quality of the stock at regular intervals. Explaining the science behind onion storage, Khare said the vegetable contains 90% water and retains its quality for three months post-harvest, after which it keeps shrinking every month as water vapourises. The extent of spoilage depends on storage conditions and ventilation. While some onion was procured in May, the bulk of the buffer stock was procured in June-July, which is why the quality remains good. Onion recovery is estimated at 72% this year -- up from 49% in 2022, 54% in 2023 and 63% in 2024.
Onion prices have reached ₹62 per kg in Delhi as of August 26, representing an 88% increase compared to the same period last year and a 28% rise from the previous month. The Centre has launched Kanda Express trains from Monday to transport onions from Nasik to major consuming centres, with the first train now reaching Delhi. According to PTI, Consumer Affairs Secretary Nidhi Khare asserted that the country has adequate supply of onions to meet demand during the festive season and said that prices would start falling once the message goes out about government's steps. She noted that mandi prices in Nashik have started easing following the initiative, with it being unusual that the mandi price of onion in the producing centre of Nashik stood at ₹44/kg on August 24 -- higher than the ₹25/kg retail price at the consumption centre of Delhi on the same day. The all-India average retail price stood at ₹46.58 per kg, while the wholesale rate was ₹38.29 per kg on the same day.
The Kanda Express initiative has been significantly scaled up from its 2024-25 launch. As reported by PTI, the programme expanded from 14 railway rakes carrying nearly 12,000 tonnes to 86 rakes carrying about 88,000 tonnes in 2025-26, transporting onions to 16 major cities across the country. Rajasthan and Madhya Pradesh are slowly emerging as major suppliers of onion to Delhi and other northern states, with Khare noting there should not be a problem as the stock is good. The first Kanda Express carrying onions has left Nashik for New Delhi and is expected to reach the Delhi-NCR region, while road consignments are being sent to multiple cities. Consumer Affairs Secretary Nidhi Khare told PTI that initially, supplies will be distributed to five major consumption centres - Chennai, Madurai, Delhi, Ernakulam and Guwahati - with additional destinations to be included based on emerging market requirements.
The government has provided encouraging updates on upcoming onion crops and market conditions. As reported by PTI, Khare said the kharif onion crop outlook is also promising, with the El Nino scare now over. She further allayed concerns over El Nino's impact on the rabi onion crop, saying irrigation has improved and water levels in key reservoirs remain healthy. Despite the price spike, Consumer Affairs Secretary Nidhi Khare said onion availability remains comfortable to meet domestic demand in the coming months, supported by an estimated production of 307.37 lakh tonnes in 2025-26, broadly on par with 307.67 lakh tonnes produced the previous year. The government has set a procurement target of 2 LMT of Rabi onion for the Price Stabilisation Fund buffer for 2026-27, with procurement beginning on May 15 through NAFED and NCCF, with around 1.21 LMT procured so far.
