Onion Express: Govt Rolls Out Rail-Road Push to Tame Prices
New Delhi, September 01, 2026 — The Government has launched a calibrated release of onion buffer stocks, deploying a hybrid rail-and-road transport model to move supplies to major consumption centres across the country, as part of efforts to ensure adequate availability and ease seasonal price pressures.
The disposal of onions from the Price Stabilization Fund (PSF) buffer began on August 24, 2026, through NAFED and NCCF.
Kanda Express Rakes Roll Out
Two special “Kanda Express” rail consignments have already been dispatched from Nashik. The first, carrying 450 MT of onions, reached Delhi late on August 27. Of this, 140 MT was further distributed to Varanasi, Lucknow, Chandigarh and Amritsar, while the rest was routed across the Delhi-NCR region.
The second rake, carrying 840 MT, arrived in Chennai on August 31. The Tamil Nadu government plans to distribute the consignment through the Public Distribution System (PDS), at a rate of 1 kg per ration card, across various districts under a proposed clustering plan.
Alongside the rail movement, around 1,000 MT of onions are being transported by road to key consumption centres, with dispatch decisions guided by prevailing market conditions and price trends.
Retail Push Spans 19 Cities
Retail intervention efforts have been scaled up across 19 cities — Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur, Sharif, Bhubaneswar, Chennai, Madurai, Thrissur and Kochi — backed by over 30 trucks to widen availability. The retail drive was formally launched in Lucknow by Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri B.L. Verma.
Onions are being sold at a subsidised retail rate of Rs 35 per kg through NCCF, NAFED and Kendriya Bhandar outlets, as well as mobile vans. So far, around 669 MT has been sold — 223 MT through bulk channels via e-NAM and similar online platforms at prevailing mandi rates, and 446 MT through retail outlets nationwide.
Early Signs of Price Relief
Officials say the buffer stock release has already begun easing prices in markets that have received consignments, including Varanasi, Amritsar and Delhi and its surrounding areas, with prices declining since the day after disposal began. Further supplies are expected to reinforce this trend.
Farmers Paid Rs 210 Crore
In parallel, the Government said Rs 210 crore has been directly disbursed to around 3,400 onion farmers to ensure timely payments. Officials added that robust security arrangements have been put in place to prevent leakages and address security concerns during the transport and disposal of large onion volumes via rail.
The Government reiterated its commitment to supporting farmers while ensuring affordable, adequate onion supplies for consumers nationwide.
