The government has expanded the calibrated release of onion buffer stocks to 19 cities through a hybrid transportation model involving railway rakes, or Kanda Express, and road transport to major consumption centres. The initiative aims to ensure adequate availability of onions and moderate seasonal price pressures.
The disposal of onions from the Price Stabilization Fund (PSF) buffer began on August 24, 2026, through the National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers’ Federation of India (NCCF).
Two Kanda Express consignments dispatched
According to the Ministry of Consumer Affairs, Food & Public Distribution, two Kanda Express consignments have so far been dispatched from Nashik. The first rake, carrying 450 metric tonnes (MT) of onions, reached Delhi late on August 27. Of this, 140 MT was subsequently supplied to Varanasi, Lucknow, Chandigarh and Amritsar, while the remaining quantity was distributed across the Delhi-NCR region.
The second rake, carrying 840 MT, reached Chennai on August 31. The Tamil Nadu government plans to distribute these onions through the Public Distribution System (PDS), with a proposed allocation of 1 kg per ration card.
Alongside railway transportation, around 1,000 MT of onions are being moved by road to major consumption centres, depending on prevailing market conditions and price trends. The hybrid transportation strategy is intended to improve supplies and respond quickly to areas facing seasonal price pressures.
Buffer stock release expanded to 19 cities
The retail intervention has now been expanded to 19 cities, with more than 30 trucks deployed across the country. These include Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur and Sharif in Bihar, Bhubaneswar, Chennai, Madurai, Thrissur and Kochi.
Onions are being sold at Rs 35 per kg through NCCF, NAFED and Kendriya Bhandar retail outlets, as well as mobile vans. So far, around 669 MT of onions have been sold. This includes 223 MT through bulk channels such as the e-NAM portal and similar online platforms at prevailing mandi prices, while 446 MT has been sold through retail channels.
The government said the release of buffer stocks has improved market availability and eased prices, particularly in Varanasi, Amritsar, Delhi and surrounding markets. Prices began declining from the day after disposal operations started, and increased supplies are expected to provide further support to price stability. The ministry said that around Rs 210 crore has been directly paid to nearly 3,400 farmers through a direct payment mechanism.