India Prime TV | Business Desk Onion Price Hike 2026 Onion prices have witnessed a sharp rise across India, putting additional pressure on household budgets. According to data available as of August 24, 2026, the all-India average retail price of onions has risen to ₹43.53 per kg, compared with ₹27.37 per kg during the same period last year—an increase of around 59%.
The average wholesale price has also jumped by around 68%, from ₹21.23 per kg last year to ₹35.58 per kg currently. In major cities, prices have climbed even higher, with onions selling at around ₹55 per kg in Delhi and ₹60 per kg in Chennai.
Amid the sharp increase, the Central Government has stepped in with additional supplies, buffer-stock releases and the special ‘Kanda Express’ railway initiative.
What is ‘Kanda Express’?
The government has started transporting bulk onion stocks from Nashik, Maharashtra, to major consumption centres through dedicated railway rakes, popularly referred to as the ‘Kanda Express’.
According to Consumer Affairs Secretary Nidhi Khare, the initiative is aimed at increasing availability in cities where prices have risen significantly and at reducing the impact of seasonal price pressure. The initial destinations include Delhi, Chennai, Madurai, Ernakulam and Guwahati. The consignments are expected to reach the identified centres by Wednesday.
The government has also significantly expanded the railway-based onion transportation programme. According to reports, the initiative has grown from 14 rakes carrying nearly 12,000 tonnes in 2024-25 to 86 rakes carrying around 88,000 tonnes in 2025-26, covering 16 major cities.
Government to sell onions at ₹35 per kg
One of the major relief measures is the release of onion from the government’s strategic buffer stock.
The Centre currently has around 1.21 lakh tonnes of onion in its buffer stock for the current year. The government plans to use this stock for calibrated market intervention whenever prices rise sharply or supplies tighten.
Government agencies NCCF and NAFED will sell onions in the retail market at a subsidised price of ₹35 per kg.
In Delhi-NCR, the onions are expected to be made available through NCCF outlets and Bharat Brand stores, while other retail channels and consumption centres will also be used depending on market requirements.
The government has been using this mechanism in previous years as well. In October 2024, PIB reported that 1,600 MT of onions were transported from Nashik to Delhi-NCR by the Kanda Express, with part of the stock being sold to consumers at ₹35 per kg.
Why are onion prices rising?
According to the government assessment, onion prices generally witness seasonal pressure during August-September due to factors such as festive demand, weather-related disruptions, supply-chain movements and changing demand patterns.
There are also concerns over market speculation and possible hoarding in some areas. The government has therefore decided to increase market availability through buffer-stock releases and bulk transportation rather than allowing supply shortages to push prices further upward.
Government’s other steps on onion prices
The Centre is also continuing procurement for the Price Stabilisation Buffer through NAFED and NCCF.
In July 2026, the government increased the procurement price of onions for the price-stabilisation buffer by 13%, from ₹1,875 to ₹2,125 per quintal, with the revised price effective from July 4, 2026. The move is aimed at providing better returns to farmers while strengthening government buffer procurement.
The government has estimated 2025-26 onion production at 307.37 lakh metric tonnes, broadly comparable to 307.67 lakh metric tonnes in 2024-25. Officials have said overall availability remains comfortable, while buffer stocks are available for calibrated intervention.
Official government references
For your article, these are useful supporting government sources:
- PIB – Government transports onion from Nashik to Delhi by Kanda Express — Official PIB release on rail-based onion transportation and the Kanda Express initiative.
- PIB – Second train with 840 MT of onion arrives in D
