Government Intervenes as Onion Prices Surge in India

The Indian government has initiated measures to control soaring onion prices by facilitating bulk transfers from Nashik, Maharashtra, to key consumption centres. These transfers are being executed via dedicated railway services known as 'Kanda Express'. This intervention aims to alleviate the seasonal price hike that has significantly impacted consumers.

As of August 24, retail prices of onions had increased by 59% compared to the same period last year, reaching an average of ₹43.53 per kilogram, up from ₹27.37. Wholesale prices have similarly risen by 68%, now standing at ₹35.58 per kg, compared to ₹21.23 per kg a year earlier. In major cities, the prices vary significantly, with Chennai reporting onions at ₹60 per kg, Delhi at ₹55, and Kolkata at ₹53.

The government has dispatched the first batch of onions to five major cities, namely Chennai, Madurai, Delhi, Ernakulam, and Guwahati, aiming to meet increasing demand. Future shipments are likely to expand to additional locations based on assessment of market conditions. The buffer stock of onions available for distribution amounts to 1.21 lakh tonnes, which the government claims is adequate to address current consumer needs.

According to the data provided by the Ministry of Consumer Affairs, the production estimate for onions in the financial year 2025-26 stands at 307.37 lakh tonnes, only slightly lower than the previous year’s tally of 307.67 lakh tonnes.

The 'Kanda Express', which was launched in 2024-25, is now operating at an increased capacity compared to last year. While 14 rakes transported nearly 12,000 tonnes to five cities last year, this year sees a significant scale-up with 86 rakes set to deliver approximately 88,000 tonnes to 16 major locations. Consumer Affairs Secretary Nidhi Khare stated that the government will maintain close monitoring of the market and adjust its interventions as necessary to ensure stable prices while balancing the interests of consumers and farmers alike.