The government has launched a special initiative called the ‘Kanda Express’ to counteract the recent surge in onion prices, which have increased by 59%. The decision is aimed at facilitating the supply of onions from buffer stocks to key markets, thereby addressing rising wholesale and retail prices.

Onions are being transported via rail from Nashik in Maharashtra to five major cities: Delhi, Chennai, Kochi, Madurai, and Guwahati. This intervention seeks to ensure that sufficient quantities of onions are available in the major mandis, which are wholesale markets, to help bring prices down. Starting on August 28, 2026, the first consignment will consist of 840 tonnes of onions dispatched from Lasalgaon in Nashik to Delhi.

The government’s strategy focuses on releasing large quantities of onions to address high wholesale prices. If successful, this could translate into reduced retail prices, especially in the Delhi National Capital Region (NCR), where consumers are feeling the impact of the price increase.

Details of the ‘Kanda Express’ Initiative

The ‘Kanda Express’ initiative is designed specifically to transport onions from major production areas, with Nashik identified as a central hub. The initiative revolves around moving these onions directly to large consumption centres, ensuring that they reach the markets in a timely manner.

The initial shipment through this initiative will see 840 tonnes of onions moved from Lasalgaon to the capital city, Delhi. This approach is intended to manage prices effectively by increasing the availability of onions in locations where demand is high and prices are under strain.

By concentrating on providing bulk shipments directly to major mandis, the government aims to mitigate price pressures through enhanced supply in the wholesale market. The ultimate goal is to alleviate the financial burden on consumers while maintaining market stability.

Government Assurances on Onion Supply

Despite the recent hike in prices, the government has reported that there is no shortage of onions in the country. Current estimates indicate that onion production is expected to reach approximately 307 lakh tonnes in the 2025-26 agricultural year, closely aligned with the previous year’s production figures of 308 lakh tonnes.

This projection suggests that while prices have escalated in certain markets, overall production remains stable. The government’s buffer stocks further bolster confidence, offering a mechanism to respond to market fluctuations and stabilize prices when necessary.

As the government continues to implement its immediate strategy to enhance onion supply in wholesale markets, the ‘Kanda Express’ initiative stands as a focal point. By strategically releasing buffer-stock onions, the government seeks to ensure that wholesale prices diminish. Should these lower prices filter through the supply chain, retail consumers may eventually experience relief from prevailing high prices.

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