Government To Sell Onions In Delhi At 36% Discount; 'Kanda Express' Arrives Wednesday

After Onion prices shot up in parts of the nation, the Indian government decided to sell onions at a subsidised rate of Rs 35 per kg in the national capital, a discount of around 36 per cent from the prevailing average retail price. The move would be possible with the help of 800 tonnes of fresh vegetable supplies reaching here on Wednesday through the first ''Kanda Express''.

Consumer Affairs Secretary Nidhi Khare on Tuesday said that onions will be retailed via Nafed, NCCF and Kendriya Bhandar stores in the national capital.

Bulk onions are also being transported through dedicated railway rakes to four other centres -- Chennai, Ernakulam, Madurai and Guwahati, she said on a social media platform. The onion being transported to these consuming centres is a buffer stock maintained at Nasik, Maharashtra. The stock is being released to check price rise.

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The all-India average retail price of onion has jumped more than 28 per cent in a month to Rs 44.72/kg on August 25, up from Rs 34.80 per kg on July 25. A year ago, the price was Rs 28.67 per kg on the same day, reflecting a sharp 56 per cent increase.

Among major cities, retail onion prices on Tuesday stood at Rs 60 per kg in Chennai (Rs 35 per kg a year ago), Rs 55 per kg in Delhi (Rs 33), Rs 60 per kg in Kolkata (Rs 32/kg), Rs 48 per kg in Mumbai (Rs 32 per kg) and Rs 38 per kg in Ranchi (Rs 25 per kg).

Data maintained by the ministry shows that the average wholesale price was up 63 per cent at Rs 36.73 per kg on August 25, against Rs 22.54 per kg in the year-ago period. In a month, the wholesale prices have risen by 33.5 per cent.

The Kanda Express initiative, aimed at enhancing logistical efficiency for large-scale onion movement, was launched in 2024-25 and has since been scaled up considerably.

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 onion buffer stock is the Centre''s strategic reserve, built up primarily to cushion the market against price spikes when supplies tighten. The government maintains onion stocks in different producing states as part of the Price Stabilisation Fund scheme.

About 1.21 lakh tonnes of onion buffer has been maintained for 2026.

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According to the government, onion availability remains comfortable to meet domestic demand over the coming months, supported by estimated 2025-26 production of 307.37 lakh tonnes, ''broadly on a par with 307.67 lakh tonnes in the previous year.

Onion prices typically see a seasonal uptick from August-September due to festive demand, weather-related disruptions, supply chain movements, and shifting demand patterns. 

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