Government Starts Buffer Onion Stock Release, First Kanda Express Heads to Delhi

The government has started a calibrated and targeted release of onions from its buffer stock to ensure adequate supplies and contain seasonal price pressures ahead of the festive and wedding season. The intervention will use a hybrid transportation model combining railway rakes and road transport to move onions from producing regions to major consumption centres based on prevailing market conditions and price trends.

Retail sales of buffer onions at Rs 35 per kg are also set to be launched through outlets and mobile vans operated by NCCF and NAFED, along with Safal and Kendriya Bhandar outlets.

The move comes as the government seeks to prevent undue price volatility during a period when onion prices typically rise due to higher seasonal demand and supply-chain pressures.

Production outlook remains comfortable

The government said onion availability is expected to remain adequate in the coming months, supported by an estimated production of 307.37 lakh metric tonnes (LMT) in 2025-26, broadly in line with the previous year's output of 307.67 LMT.

With production prospects remaining comfortable, the government has set a procurement target of 2 LMT of Rabi onions for the Price Stabilization Fund (PSF) buffer for 2026-27. Procurement through NAFED and NCCF began on May 15, 2026, and around 1.21 LMT of onions have already been procured for the buffer.

In a new step aimed at improving storage management and operational efficiency, the Central Warehousing Corporation (CWC) has been engaged for the first time as the storage agency for the PSF onion buffer during 2026-27.

The government expects robust production, available buffer stocks and proactive market interventions to help maintain adequate supplies and moderate price pressures during the coming months.

The release of buffer onions will be carried out through a combination of railway rakes and road transport, allowing supplies to be directed quickly to major consumption centres. The quantity of onions released, the areas covered and the distribution channels used will be expanded or adjusted depending on market conditions, price movements, arrivals and demand.

The intervention comes ahead of a period marked by festivals including Onam, Ganesh Chaturthi, Durga Puja, Dussehra and Diwali, as well as the wedding season, when onion prices often witness a seasonal increase.

Onions to be sold at ₹35 per kg

As part of the targeted retail intervention, buffer onions will be sold at Rs 35 per kg through NCCF and NAFED retail outlets and mobile vans, besides Safal and Kendriya Bhandar stores.

The distribution network will include 9 NCCF outlets and 40 mobile vans, 13 NAFED outlets and 50 mobile vans, and around 100 Kendriya Bhandar outlets. The government said the initiative is aimed at ensuring that consumers have access to onions at affordable prices while helping moderate excessive market volatility.

Kanda Express Strengthens Movement 

The government's Kanda Express initiative has emerged as a key logistics mechanism for transporting buffer onions from production centres to major markets.

During 2024-25, around 12,000 metric tonnes of onions were transported to five cities through 14 railway rakes. The operation expanded significantly in 2025-26, when 86 railway rakes carried around 88,000 metric tonnes of onions to 16 cities across the country.

In the current financial year, onion transportation has begun through the Kanda Express from Nashik to New Delhi. The first train has already departed Nashik and is expected to reach the Delhi-NCR region.

At the same time, buffer onions are being moved by road to major consumption centres including Chennai, Kolkata, Ernakulam, Guwahati, Varanasi, Lucknow, Patna, Chandigarh, Jammu and Amritsar.

The hybrid transportation model is expected to enable faster and more flexible movement of onions depending on market requirements.

Onion exports remain strong

Despite the government's focus on maintaining domestic availability, onion exports have remained robust.

During April-June 2026, India exported approximately 3.82 LMT of onions, with Malaysia, Sri Lanka, the UAE and Nepal emerging as the major destinations.

The government said the continued export performance reflects the comfortable domestic availability of onions.

Prices monitored across 579 centres

The Department of Consumer Affairs monitors the daily prices of 41 essential commodities, including onions, across 579 centres nationwide. Market price trends, arrivals and demand conditions are being used to determine the scale and destinations of buffer stock releases.

As of August 26, 2026, the All-India average retail price of onions stood at Rs 37.87 per kg. The government said prices of major pulses, including tur, gram, masur, urad and moong, as well as essential vegetables such as tomato and potato, are currently stable and range-bound. Tomato, potato and chana dal prices are also lower than a year ago.

The government said it will continue to closely monitor onion prices, arrivals, availability and demand across states. Further interventions will be undertaken wherever necessary to ensure adequate supplies, curb unwarranted price increases and protect consumer interests, while also seeking to ensure remunerative returns for farmers through a balanced price stabilisation approach.