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Onion prices have risen sharply across major Indian cities, prompting the government to step up market intervention and bring additional buffer stock to key consumption centres.

In Delhi, onions will be sold at a subsidised price of Rs 35 per kg through Nafed, NCCF and Kendriya Bhandar outlets. The rate is around 36 per cent below the prevailing average retail price, according to the government.

Consumer Affairs Secretary Nidhi Khare said on Tuesday that 800 tonnes of fresh onions would reach the national capital on Wednesday through the first 'Kanda Express' of the season, reported PTI.

Kanda Express To Move Buffer Stock To Major Cities

Khare said in a post on social media that dedicated railway rakes are also being used to transport bulk quantities of onions to Chennai, Ernakulam, Madurai and Guwahati.

The onions being moved to these markets are part of the Centre's buffer stock held in Nashik, Maharashtra. The government is releasing the reserve to increase supplies and help contain price pressures.

The 'Kanda Express' initiative was introduced in 2024-25 to improve the transportation of large quantities of onions from producing areas to major consumption centres.

Its operations have expanded considerably since then. In 2024-25, 14 railway rakes transported nearly 12,000 tonnes of buffer onions to five cities.

The programme was expanded in 2025-26, when 86 rakes carrying around 88,000 tonnes were sent to 16 major cities.

Onion Prices Rise Across Major Markets

The government's intervention comes as onion prices have climbed over the past month.

The all-India average retail price stood at Rs 44.72 per kg on August 25, up more than 28 per cent from Rs 34.80 per kg a month earlier, according to data from the Consumer Affairs Ministry.

The increase is even sharper compared with last year. The average retail price was Rs 28.67 per kg on August 25, 2025, putting the current rate around 56 per cent higher.

Among major cities, onion prices on August 25 were:

Chennai: Rs 60 per kg, compared with Rs 35 a year earlier
Delhi: Rs 55 per kg, compared with Rs 33
Kolkata: Rs 60 per kg, compared with Rs 32
Mumbai: Rs 48 per kg, compared with Rs 32
Ranchi: Rs 38 per kg, compared with Rs 25

Wholesale prices have also moved higher. Ministry data showed the average wholesale price at Rs 36.73 per kg on August 25, up 63 per cent from Rs 22.54 per kg during the same period last year.

Over the past month, the average wholesale price has increased by 33.5 per cent.

Govt Has 1.21 Lakh Tonnes In Onion Buffer

The onion buffer stock is maintained by the Centre as a strategic reserve to increase market supplies when prices rise because of tighter availability.

The government maintains these stocks in onion-producing states under the Price Stabilisation Fund scheme.

For 2026, around 1.21 lakh tonnes of onions have been maintained as buffer stock, which can be released into the market when required.

The government has said that overall onion availability remains adequate to meet domestic demand in the coming months.

Onion Production Expected To Remain Stable

According to the government, onion production for 2025-26 is estimated at 307.37 lakh tonnes. This is broadly in line with the previous year's production of 307.67 lakh tonnes.

Despite the availability outlook, onion prices typically rise during August and September. The government has attributed the seasonal movement to factors including festive demand, weather-related disruptions, supply chain movements and changes in consumption patterns.

The release of buffer stock and the movement of onions through dedicated railway services are among the measures being used to improve supplies in major consumption markets.