New Delhi: As onion prices soar ahead of the festive season, the Consumer Ministry has launched a unique initiative to stabilize the market and ensure availability in high-demand areas. In a historic move, the government has introduced the ‘Kanda Express’ a special train dedicated to transporting onions from Maharashtra’s buffer stock to major cities, starting with Delhi.
To curb skyrocketing onion prices, which have hit as high as Rs 75 per kilogram in some cities, the first-ever rail shipment of onions departed from Lasalgaon railway station in Nashik, Maharashtra, bound for Kishanganj in Delhi. This initial consignment includes 1,600 tonnes of onions, aiming to stabilize prices in the Delhi-NCR region where buffer stock onions are already being sold at a subsidized rate of Rs 35 per kg.
The Kanda Express is just one component of the government’s larger strategy to rein in onion prices during the festive season. The Consumer Ministry attributes the sharp price rise to hoarding by traders who are withholding supplies to inflate prices artificially. By releasing government-stored onions into the market, the ministry expects not only to meet demand but also to force hoarders to lower their prices.
Nand Kumar Khare, a senior official from the Consumer Ministry, described the rail initiative as a “historic step,” marking the first time India has used trains to transport onions on such a large scale. The plan doesn’t stop with Delhi; similar shipments are being arranged for other high-demand regions, including Lucknow, Varanasi, and several northeastern states like Assam, Nagaland, and Manipur.
The decision to transport onions via rail rather than road is also a cost-saving measure. Transporting one trainload of onions—equivalent to 56 truckloads—costs Rs 70.20 lakh by rail, compared to Rs 84 lakh by road, leading to a savings of Rs 13.80 lakh per shipment. The government has partnered with logistics company Concord to ensure the onions are transported in sealed containers to minimize spoilage.
Since September 5, the government has been selling onions from its buffer stock at subsidized rates through multiple channels, including mobile vans, NCCF, NAFED shops, e-commerce platforms, and Mother Dairy stores. To expand its reach before Diwali, the number of mobile vans distributing onions at Rs 35 per kg will increase from 600 to 1,000.
Out of the 4.7 lakh tonnes of onions held in reserve, nearly 92,000 tonnes have already been allocated to NCCF and NAFED, while another 86,000 tonnes have been dispatched to key states like Gujarat, Maharashtra, Karnataka, Rajasthan, and Uttar Pradesh. With the anticipated arrival of the fresh onion crop from Maharashtra, the government is optimistic that prices will stabilize soon, bringing much-needed relief to consumers.
Currently, onions in the retail market are priced between Rs 55 and Rs 80 per kg, but with the government’s intervention, they are being made available at Rs 35 per kg. The ministry hopes that this rapid and strategic response will ensure onion prices drop significantly, possibly below Rs 35 per kg, ahead of Diwali.
