Centre to Supply Subsidised Onions at Rs 35 per kg in Delhi as Prices Touch Rs 55
With retail onion prices in Delhi climbing to Rs 55 per kg, the Central government has begun dispatching bulk stocks from Nashik in Maharashtra via dedicated 'Kanda Express' railway rakes to sell them at a subsidised rate of Rs 35 per kg in the capital.
The intervention follows a sharp surge in onion rates across the country. The all-India average retail price increased 59 percent year-on-year to Rs 43.53 per kg on August 24, up from Rs 27.37 per kg during the same period last year. In Delhi, retail prices stood at Rs 55 per kg on Monday, compared to Rs 35 a year ago. Nationally, average wholesale prices rose 68 percent to Rs 35.58 per kg.
Consumer Affairs Secretary Nidhi Khare stated on Monday that the Kanda Express initiative was deployed to enhance supplies and mitigate seasonal price escalation. The stocks loaded in Nashik are scheduled to reach consumption centres, including Delhi, Chennai, Madurai, Ernakulam, and Guwahati, by Wednesday.
Upon arrival, the buffer-stock onions will be offloaded into wholesale and retail markets. In retail markets, the produce will be sold directly to consumers at Rs 35 per kg through the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).
The Centre currently maintains a strategic buffer reserve of 1.21 lakh tonnes of onions procured under the Price Stabilisation Fund. Khare noted that mandi prices in Nashik were higher than those recorded in Delhi, suggesting that market speculation and cartelisation may be contributing to the upward price trend.
According to the Ministry of Consumer Affairs, onion prices often experience volatility during August and September due to changing demand patterns, festive requirements, and weather-related supply disruptions. Khare added that overall domestic availability remains stable, with estimated production for 2025-26 placed at 307.37 lakh tonnes, compared to 307.67 lakh tonnes in the prior year.
The Kanda Express logistical operation has expanded significantly since its launch in 2024-25, growing from 14 rakes moving 12,000 tonnes of onions to 86 rakes transporting roughly 88,000 tonnes across 16 cities in 2025-26.
