To curb the soaring <a href="https://www.mid-day.com/mumbai/mumbai-news/article/onion-prices-could-touch-rs-70-per-kg-in-mumbai-during-diwali-warn-traders-23632367" target="_blank" rel="none noopener">onion prices</a> that is around Rs 55-60 per kg in several cities across the country, the government will begin retail sale of onions at a subsidised rate of Rs 35 per kg in the national capital from Thursday.
Union Food Minister Pralhad Joshi is set to inaugurate the subsidised sale on Thursday, news agency PTI said attributing the information to a senior official in the consumer affairs ministry.
The retail intervention will be carried out through Nafed, NCCF and Kendriya Bhandar, and the onion being released into the market are from a buffer stock of 1.21 lakh tonne maintained across producing states for 2026.
"We will start the sale tomorrow in Delhi and after by weekend extend to the NCR region," said Anice Joseph Chandra, Managing Director, National Cooperative Consumers'' Federation of India (NCCF) told PTI.
NCCF holds a buffer stock of 62,000 tonne of onion. It is transporting 400 tonne from Nashik, Maharashtra, through the "Kanda Express", which is expected to reach Delhi on Thursday.
The cooperative agency said it will retail onions through 100 Kendriya Bhandar stores and through 15 mobile vans which would be expanded to 40 vans from August 28.&nbsp;
Besides, NCCF is in talks with Mother Dairy for retailing the onions through the latter&rsquo;s 300 outlets. Supplies arriving by rail rake will also be used for sale in Chandigarh, Ludhiana, Varanasi and other cities, Chandra said.
Similarly, Nafed, which has a buffer of less than 55,000 tonne of onion, will sell onions in Delhi, Kochi and Guwahati.
<h2>What is Kanda Express?</h2>
The government is transporting bulk onion consignments to the capital via dedicated railway rakes named "<a href="https://www.mid-day.com/news/india-news/article/maharashtra-nashik-onions-to-reach-delhi-on-kanda-express-amid-rising-prices-23646548" target="_blank" rel="none noopener">Kanda Express</a>", to move the supplies quickly.
The first such rake, carrying 800 tonne of onions, has already left Nashik and is on its way to Delhi.
Besides Delhi, four other centres that comprise Chennai, Ernakulam, Madurai and Guwahati, are set to receive onion supplies through dedicated rakes, though bookings for these routes are yet to be made, according to PTI.
<h2>Why is the government doing this?</h2>
The government intervention comes amid surging onion prices over the past month. The all-India average retail price rose over 28 per cent to Rs 44.72 per kg on August 25, up from Rs 34.80 per kg a month earlier on July 25. Onions retailed at Rs 28.67 per kg last year, and they have increased over 56 per cent this year.
On Wednesday, retail <a href="https://www.mid-day.com/mumbai/mumbai-news/article/maharashtra-devendra-fadnavis-eknath-shinde-defends-government-amid-protests-over-onion-prices-23632308" target="_blank" rel="none noopener">onion prices</a> stood at Rs 60 per kg in both Chennai and Kolkata (against Rs 35 and Rs 32 per kg, respectively, a year ago), Rs 55 per kg in Delhi (Rs 33 a year ago), Rs 48 per kg in Mumbai (Rs 32) and Rs 38 per kg in Ranchi (Rs 25).
Wholesale prices too have shown similar trends. The average wholesale price stood at Rs 36.73 per kg on August 25, up 63 per cent year-on-year from Rs 22.54 per kg, and up 33.5 per cent over the past month alone, as per ministry data.
Officials attributed the price rise to the usual seasonal increase seen between August and September, driven by festive demand, weather-related disruptions, supply chain movements and shifting consumption patterns.
<h2>Adequate onion stocks</h2>
Despite the price surge, the government maintains that there is sufficient onion stock to meet domestic demand in the coming months. The estimated onion production in 2025-26 is 307.37 lakh tonne, broadly on par with the 307.67 lakh tonne recorded the previous year.
(With inputs from PTI)

Average retail price of onions rose over 28 per cent to Rs 44.72 per kg on August 25, up from Rs 34.80 per kg a month earlier 

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The all-India average retail price rose over 28 per cent to Rs 44.72 per kg on August 25, up from Rs 34.80 per kg a month earlier on July 25

Centre to sell onions at Rs 35 per kg in Delhi from Thursday amid price rise

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