Now Reading: Govt to sell onions at Rs 35/kg in Delhi via Kanda Express
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Govt to sell onions at Rs 35/kg in Delhi via Kanda Express
The government will sell onions at a subsidised rate of Rs 35 per kg in Delhi, a discount of about 36% from the prevailing retail price, using 800 tonnes of fresh supply…
The government will sell onions at a subsidised rate of Rs 35 per kg in Delhi, a discount of about 36% from the prevailing retail price, using 800 tonnes of fresh supply arriving on Wednesday via the first 'Kanda Express' train. Consumer Affairs Secretary Nidhi Khare said the onions will be retailed through Nafed, NCCF and Kendriya Bhandar stores.
Bulk onions are also being sent by dedicated railway rakes to Chennai, Ernakulam, Madurai and Guwahati from the buffer stock maintained at Nasik, Maharashtra. The all-India average retail price of onion has risen over 28% in a month to Rs 44.72 per kg on August 25, from Rs 34.80 on July 25. A year ago it was Rs 28.67 per kg.
In major cities, retail prices on Tuesday were Rs 60 per kg in Chennai and Kolkata, Rs 55 in Delhi, Rs 48 in Mumbai and Rs 38 in Ranchi. The government's onion buffer stock for 2026 is about 1.21 lakh tonnes, and estimated production for 2025-26 is 307.37 lakh tonnes, broadly steady from last year.
Indian Opinion Analysis
Onion prices typically spike between August and September due to festive demand and seasonal supply gaps, making this the most politically sensitive food item for any government. The Centre began scaling up the Kanda Express rail-based logistics in 2024-25, dispatching 14 rakes that year compared to 86 rakes in the current year. The Price Stabilisation Fund, under which this buffer is maintained, allows the government to intervene by releasing stocks into the market without having to impose stock limits or import duties. The real test is whether the 800-tonne arrival can bring Delhi retail prices below Rs 50 per kg in the next two weeks, when festival demand peaks.
Source: greaterkashmir.com
This brief was synthesised by AI from the source linked above.
