On October 20, a train loaded with 1,600 tonnes of onions will arrive in Delhi from Nashik, Maharashtra, marking a significant intervention by the central government to stabilize prices ahead of Diwali. This initiative represents the largest wholesale effort by the Centre concerning onions.
The consignment will be sold at auction with a base price of ₹35 per kilogram, while current retail prices in Delhi are exceeding ₹75 per kilogram. This year, the average procurement cost from farmers stands at ₹28 per kilogram, compared to approximately ₹17 per kilogram last year.
Delhi and surrounding markets typically receive a daily supply of around 2,500-2,600 tonnes of onions, making this single train delivery—equivalent to 53 truckloads—substantial, as it will provide more than half of the daily requirement.
Dubbed the “Kanda Express” (with “kanda” being the Marathi term for onion), this initiative is expected to help stabilize retail prices. Consumer Affairs Secretary Nidhi Khare emphasized the historic nature of this rail transport initiative, noting that similar arrangements will also be made for Lucknow, Varanasi, and northeastern states like Assam, Nagaland, and Manipur.
Khare mentioned that declining prices in Nashik’s markets should soon reflect in retail prices as well. This train delivery aligns with the ruling Mahayuti’s pro-farmer initiatives, especially with Maharashtra’s elections approaching. Nashik is a major hub for onion trading, and analysts have linked the Mahayuti’s electoral challenges to the discontent among onion farmers, prompting the government to relax export restrictions to support prices.
Additionally, the government is discussing the use of sealed containers with the Container Corporation of India to reduce onion damage during transport. Khare noted that rail transport is a cost-effective solution, with transporting one rake (equivalent to 56 trucks) from Nashik to Delhi costing ₹70.20 lakh by rail, compared to ₹84 lakh by road, resulting in savings of ₹13.80 lakh per rake.
Since September 5, the government has been selling buffer stock onions at subsidized rates through various channels, including mobile vans, NCCF and Nafed outlets, e-commerce platforms, Mother Dairy’s Safal outlets, and Kendriya Bhandar. Ahead of Diwali, the number of mobile vans will increase from 600 to 1,000.
Out of the 4.7 lakh tonnes of buffer stock, 91,960 tonnes have been allocated to NCCF and Nafed, while 86,000 tonnes have been dispatched to states like Gujarat, Maharashtra, Karnataka, Goa, Rajasthan, Bihar, Uttar Pradesh, and Manipur. The government is optimistic about price stabilization, especially with the expected arrival of fresh crops from Maharashtra.
Although onion export prices have remained stable, the quantities are being managed effectively despite a slight increase following the removal of the minimum export price and a reduction in duty from 40% to 20%.
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