Onion prices surge; Centre to roll out Kanda Express from Monday

NEW DELHI: The government plans to address the surge in onion prices by offloading its buffer stock and launching the Kanda Express from Monday. The average onion price climbed to Rs 42 per kg, 45% higher than last year and 19% more than the previous month. The Centre will operate Kanda Express trains on Monday, transporting onions from Nasik to Delhi, Chennai, Kochi, and Guwahati, where prices exceed the national average.

Retail onion prices in Delhi and Chennai have soared to Rs 65 and Rs 58 per kg, respectively, compared to Rs 35 and Rs 33 last year.

Sugar prices are also on the rise, with retail prices reaching Rs 62.5 per kg in Delhi and Rs 69 in Mumbai, up from Rs 46 per kg a month ago. Officials stated that the government will distribute onions at a reduced price, considering that traders may be inflating prices artificially. They assured sufficient stock with both the government and farmers to meet demand in the coming months. The Food Ministry also confirmed adequate sugar availability.

Last time the government deployed the Kanda Express to curb rising onion prices was in October 2024. Reports of a 5% to 7% decline in kharif onion output in Maharashtra, the largest producer, have contributed to the price increase. The cooperative NAFED and National Cooperative Consumers' Federation (NCCF) have procured about 1.2 lakh tonnes of onion for the current fiscal year.

The government had fixed the onion procurement price at Rs 1,270 per quintal in May but raised it to Rs 2,645 per quintal in late June to accelerate procurement. Onion production for the 2025-26 crop year is estimated at 307 lakh tonnes, similar to the figure for the 2024-25 crop year.

Meanwhile, retail loose sugar prices are also increasing, with the current price at Rs 62.5 per kg, 34% higher than last year and 28.5% more than a month ago.