Now Reading: Centre launches Kanda Express trains to curb onion prices
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Centre launches Kanda Express trains to curb onion prices
The Centre has started moving bulk onion stocks through dedicated railway rakes on the Kanda Express from Nashik to five major cities, Chennai, Madurai, Delhi, Ernakulam and Guwahati, to check a seasonal…
The Centre has started moving bulk onion stocks through dedicated railway rakes on the Kanda Express from Nashik to five major cities, Chennai, Madurai, Delhi, Ernakulam and Guwahati, to check a seasonal price surge. The all-India average retail price of onion has risen 59 per cent year-on-year to Rs 43.53 per kg, prompting the intervention. Consumer Affairs Secretary Nidhi Khare said stocks loaded onto these rakes are expected to reach the identified centres by Wednesday.
Onion will be sold at Rs 35 per kg in the retail market through agencies NCCF and Nafed. The government holds a buffer stock of 1.21 lakh tonnes for the current year, deemed sufficient to meet demand. Khare said stable production of 307.37 lakh tonnes in 2025-2026, buffer stocks and proactive interventions are together expected to moderate seasonal price pressures.
Indian Opinion Analysis
The Kanda Express initiative, first launched in 2024-2025 with 14 rakes, has now scaled to 86 rakes this year, moving 88,000 tonnes of onions. The government's price-stabilisation approach, which involves calibrated buffer stock releases through mandi and retail channels, aims to balance consumer and farmer interests. Onion prices typically rise from August-September due to festive demand and supply-chain disruptions. The next key signal is whether retail prices in Chennai, where onion is at Rs 60 per kg, ease towards the Rs 35 per kg release price in the coming weeks.
Source: rediff.com
This brief was synthesised by AI from the source linked above.
