Onion prices surge 59%, Centre rolls out Kanda Express

Onion prices have risen sharply across India, with the all-India average retail price increasing 59% year-on-year to Rs 43.53 per kg on August 24. The Times of India reports that the average wholesale price has risen 68% to Rs 35.58 per kg. Among major cities, Chennai saw prices at Rs 60 per kg, Delhi at Rs 55, and Kolkata at Rs 53.

To check the seasonal rise, the Centre has started transporting bulk onion stocks from Nashik via dedicated railway rakes called the Kanda Express. The first rake carrying 800 tonnes is expected to reach Delhi on Wednesday, NDTV Profit reports. The buffer-stock onions will be sold at Rs 35 per kg in retail markets through NCCF and NAFED. Initially, supplies will go to Chennai, Madurai, Delhi, Ernakulam and Guwahati.

Consumer affairs secretary Nidhi Khare said the government is closely monitoring prices and has 1.21 lakh tonnes of onion in its buffer stock. She noted mandi prices in Nashik were higher than in Delhi, suggesting cartelisation and speculation may be contributing to the rise. The government will continue to monitor prices and take further steps if required.