The ‘Kanda Express’ is Fighting Onion Price Hikes Ahead of Diwali

As onion prices surged across India, the government launched a special train service. They named it the ‘Kanda (Onion) Express,’ to transport onions quickly and efficiently from production hubs to major cities. On Thursday, at 5 PM, the Kanda Express, carrying 1,600 tonnes of onions in 42 wagons, departed from Nashik route to Delhi. Onion prices in Delhi have been hovering around USD 0,72 per kg during the festive season, causing concern for consumers.

This initiative, led by the Consumer Affairs Ministry, aims to stabilize onion prices, which have been steadily rising. Nidhi Khare, Secretary of the Department, called it a "historic first," highlighting the Railways' involvement in vegetable transport. With Diwali around the corner, the government hopes to ensure a steady supply to cities where demand peaks.

A Cost-Effective Way to Manage Supply

The Kanda Express is not only quick but also a cost-efficient solution for onion transportation. Each train carries the equivalent of 53 truckloads of onions. Transporting onions from Nashik to Delhi by rail costs around USD 840,000, compared to USD 1,000,800 by road. This method saves USD 168,000 per train, making it a highly economical option for bulk deliveries.

With this successful start, the government plans to expand this service to other cities. This might include Lucknow, Varanasi, and northeastern states like Assam and Nagaland, where prices are also soaring.

Expanding Onion Deliveries Across India

In Delhi, the government has taken an additional step to control retail prices by selling onions directly to consumers through cooperatives at USD 0,42 per kg (₹35 per kg). Bulk sales in the mandis are still happening at market rates, ensuring a balance between demand and supply.

Other cities like Lucknow and Varanasi will soon receive onion shipments via the Kanda Express with sealed containers being used to ensure minimal damage during transit. Additionally, onion sales through e-commerce platforms like the Open Network for Digital Commerce (ONDC) are under discussion, with potential direct consumer sales at USD 0,42 per kg.

Government’s Long-Term Strategy to Stabilize Prices

The government is also utilizing its 0.47 million tonnes buffer stock, purchased at USD 0,34 per kg, to supply onions to key markets. Though there is no official subsidy, the government is covering transportation and handling costs to keep prices affordable for consumers.

As part of its intervention, the Centre has allocated 91,960 tonnes of onions to agencies like NCCF and NAFED, with 86,000 tonnes already dispatched to states including Gujarat, Maharashtra, and Uttar Pradesh. This stock is being sold at no profit to keep prices stable during the festive season.

Retail Sales Surge Before Diwali

The government’s intervention has led to a rise in retail sales across various channels, including Mother Dairy’s Safal outlets and mobile vans. By increasing the number of vans from 600 to 1,000, the government aims to flood the market with affordable onions ahead of Diwali. Mobile vans have already started delivering onions directly to consumers in high-demand areas.

Meanwhile, bulk onions are continuing to be distributed to states like Rajasthan, Goa, Bihar, and Manipur from the buffer stock, ensuring that supply remains uninterrupted as Diwali approaches.

Conclusion: Will the Kanda Express Keep Onion Prices in Check?

With the Kanda Express and the government’s robust intervention measures, consumers can expect better access to affordable onions. While the onion supply chain is being stabilized, it remains to be seen whether the prices will continue to drop or stabilize. Farmers and consumers alike are closely watching the market, hoping for more relief as Diwali approaches.





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