Centre Launches Kanda Express for Onion Transport

The Union government launched the Kanda Express on 24 August 2026 to transport onions from Nashik in Maharashtra to major consuming centres such as Delhi, Chennai, Kochi and Guwahati. The measure came after the national average retail price of onions rose to ₹42 per kg on 22 August 2026, which was 45% higher than the previous year and 19% higher than the previous month.

Onion Price Movement in India

Onion is a key horticultural crop in India and a politically sensitive food item because retail prices affect household food inflation. Delhi recorded onion prices of ₹65 per kg on 22 August 2026, while Chennai recorded ₹58 per kg on the same date. Lasalgaon in Maharashtra, India’s largest onion trading hub, saw wholesale prices rise to ₹3,800 per quintal from ₹2,000 per quintal in June 2026.

Buffer Stock and Procurement System

The Department of Consumer Affairs uses buffer stock operations to release onions in the open market when prices rise sharply. NAFED and the National Cooperative Consumers’ Federation of India procured about 1.2 lakh tonnes of onions for the buffer stock in the current fiscal year. The government revised the procurement price to ₹2,645 per quintal from ₹1,270 per quintal in May 2026 to speed up stock collection.

Transport and Market Linkages

The Kanda Express is a bulk transportation model for moving onions from surplus producing regions to deficit markets. The same model was used in October 2024 to manage seasonal price increases. Trade sources cited a 5% to 7% decline in Maharashtra’s kharif onion output because of delayed monsoons, while the Agriculture Ministry projected 2025-26 production at 30.73 million tonnes.

Important Facts for Exams

• Lasalgaon in Nashik district is one of the best-known onion markets in India.
• NAFED stands for the National Agricultural Cooperative Marketing Federation of India.
• NCCF stands for the National Cooperative Consumers’ Federation of India.
• Buffer stock is a government-held reserve used to moderate price volatility in essential commodities.

Onion as a Price-Sensitive Commodity

Onion is classified as a staple vegetable in Indian food consumption and is monitored closely under retail price surveillance. The Kanda Express is linked to the movement of perishable agricultural produce by rail, which is a common logistics method for bulk commodity transport in India.