India deploys 'Kanda Express' to tackle 59% surge in onion prices

The Centre launched its 'Kanda Express' initiative on Monday to distribute substantial quantities of onions through dedicated railway rakes from Nashik in Maharashtra to key consuming cities, according to Consumer Affairs Secretary Nidhi Khare. Stocks currently being loaded are expected to reach their destinations by Wednesday, with initial supplies directed to five major consumption centres including Chennai, Madurai, Delhi, Ernakulam and Kolkata.

Onion prices have risen sharply across India in recent weeks. All-India average retail prices reached Rs 43.53 per kilogramme on August 24, representing a 59 per cent year-on-year increase from Rs 27.37/kg recorded in the same period last year. Wholesale prices showed even steeper growth, surging 68 per cent to Rs 35.58/kg compared to Rs 21.23/kg annually.

Major metropolitan areas are experiencing particularly acute price pressures. In Chennai, retail onion prices hit Rs 60/kg, nearly double the Rs 33/kg rate from a year earlier. Delhi saw prices climbing to Rs 55/kg from Rs 35/kg, while Kolkata recorded Rs 53/kg, underscoring the nationwide nature of the supply challenge.

The government's intervention through dedicated rail transport aims to bypass intermediaries and accelerate supply to deficit regions. Officials have indicated that the 'Kanda Express' represents a broader strategy to stabilize prices during the seasonal peak and ensure adequate supplies reach consumers across the country during the critical monsoon months when onion availability typically tightens.