Onion prices rise 50%: Kanda Express from today

The Indian government plans to release its onion buffer stock to curb skyrocketing prices nationwide, starting from Monday. Trains known as Kanda Express will transport onions from Nasik to major cities like Delhi, Chennai, Kochi, and Guwahati, where retail onion prices exceed the national average, according to a TOI report. The average retail price of onions surged to Rs 42 per kg on Saturday, a 45% increase from last year and a 19% rise from the previous month.

This price surge, along with rising sugar prices, is straining household budgets. Both onion and sugar prices have climbed significantly in major cities, with Delhi onion prices reaching Rs 65 per kg, up from Rs 35 a year ago, and Chennai onion prices at Rs 58 per kg, compared to Rs 33 last year. The government assures that adequate onion stock is available, and it intends to release these buffer stocks gradually at lower prices.

Some traders might be deliberately inflating prices, officials stated, but sufficient stock exists with the government and farmers to meet demand. Sugar prices are also on the rise, with loose sugar costing Rs 62.5 per kg, a 34% increase from a year ago, and even more so compared to last month. The food ministry confirmed that sugar stock is also plentiful.

Market experts attribute the price hike to a 5% to 7% decline in kharif onion output in Maharashtra, the leading onion-producing state. Historically, from July to June 2025-26, onion production is forecasted at 307 lakh tonnes, akin to the 2024-25 production.