Onion prices soaring: Centre to sell onions at ₹35/kg, sends Kanda Express to boost supply

As onion prices continue to put pressure on consumers, the Centre has said it will sell onions at ₹35 per kilogram through government-run retail outlets, giving buyers a lower-priced option compared with prevailing market rates. The subsidised onions will be available through NAFED, NCCF and Kendriya Bhandar stores as part of the government’s efforts to contain the impact of the price rise.

Moreover, the Centre is stepping up the movement of onions through the Kanda Express. Around 800 metric tonnes of onions are being brought to Delhi, where the stock will be sold to consumers at ₹35 per kg. The Kanda Express will initially transport onion supplies to Chennai, Ernakulam, Madurai and Guwahati, while a second consignment will subsequently move towards Delhi and other parts of north India.

The rail-based movement is aimed at transporting large quantities of onions from producing regions to major consumption centres and increasing availability in markets where prices have been rising. The latest decision combines two measures: moving larger quantities of onions to major consumption centres through the Kanda Express and selling the government-supplied stock at a fixed rate of ₹35 per kg through outlets operated by NAFED, NCCF and Kendriya Bhandar.

The move is intended to provide direct relief to consumers facing higher onion prices in the open market. The Centre has been using its onion buffer stocks to intervene in the market when prices rise, and the onions being supplied through government channels form part of that intervention.

The government had earlier maintained that overall onion availability remained comfortable and that adequate stocks were available to meet domestic demand. It can use these stocks for market intervention when prices come under pressure. With supplies being moved through the Kanda Express and onions being sold at ₹35 per kg through government outlets, the Centre is seeking to increase availability in key markets and provide lower-priced supplies to consumers.