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Govt deploys hybrid transport model to stabilise onion prices
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Thursday, 03 September, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Government has begun a calibrated release of onion buffer stocks through a hybrid transportation model involving railway rakes, branded as Kanda Express, and road transport to major consumption centres, with the aim of improving domestic availability and moderating seasonal price pressures. The disposal of onions from the Price Stabilisation Fund (PSF) buffer commenced on August 24, 2026, through NAFED and NCCF.
As part of the initiative, two Kanda Express consignments have been dispatched from Nashik. The first rake, carrying 450 MT of onions, reached Delhi late on August 27. Of this quantity, 140 MT was subsequently distributed to Varanasi, Lucknow, Chandigarh and Amritsar, while the remaining stock was distributed across the Delhi-NCR region.
The second Kanda Express rake, carrying 840 MT, reached Chennai on August 31. The Tamil Nadu Government plans to distribute the onions through the Public Distribution System (PDS), based on a requirement of 1 kg per ration card. The stock is expected to be distributed across various districts according to a proposed 16-group district-wise clustering covering North, West, East, Central and South Tamil Nadu.
In North Tamil Nadu, Group 1 covers Chennai PDS 1 and PDS 2; Group 2 comprises Tiruvallur, Kancheepuram, Chengalpattu, Vellore, Ranipet and Tirupattur; and Group 3 covers Tiruvannamalai, Villupuram and Kallakurichi. The West region includes Group 4, comprising Coimbatore and the Nilgiris; Group 5, covering Tiruppur and Erode; and Group 6, comprising Salem, Namakkal, Dharmapuri and Krishnagiri.
The East region consists of Group 7, covering Cuddalore and Mayiladuthurai, and Group 8, covering Nagapattinam and Tiruvarur. The Central region includes Group 9, comprising Ariyalur and Perambalur; Group 10, covering Tiruchy and Karur; and Group 11, comprising Thanjavur and Pudukkottai.
The South region comprises Group 12, covering Madurai and Dindigul; Group 13, covering Theni and Virudhunagar; Group 14, comprising Sivagangai and Ramanathapuram; Group 15, covering Tirunelveli and Tenkasi; and Group 16, comprising Tuticorin and Kanyakumari.
Alongside railway movement, around 1,000 MT of onions are being transported by road to major consumption centres based on prevailing market conditions and price trends. The measure is intended to strengthen supplies and contain seasonal price pressures.
Retail interventions have also been expanded to 19 cities, with more than 30 trucks deployed to improve availability. The cities include Delhi, Jaipur, Jammu, Dehradun, Shimla, Amritsar, Chandigarh, Kolkata, Guwahati, Lucknow, Varanasi, Patna, Bhojpur and Sharif in Bihar, Bhubaneswar, Chennai, Madurai, Thrissur and Kochi. The retail initiative has also been launched in Lucknow by B. L. Verma, Minister of State for Consumer Affairs, Food and Public Distribution.
Onions continue to be sold at Rs 35 per kg through NCCF, NAFED, Kendriya Bhandar outlets and mobile vans. Around 669 MT has been sold so far, including 223 MT through bulk channels via the e-NAM portal and similar online platforms at prevailing mandi prices, and 446 MT through retail channels.
The release of buffer stocks has improved market availability and contributed to price moderation, particularly in markets such as Varanasi, Amritsar, Delhi and neighbouring centres where consignments have already arrived. With additional supplies expected, the Government anticipates further support for market stability.
Meanwhile, Rs 210 crore has been paid directly to around 3,400 onion farmers, ensuring timely payments. The Government said it remains committed to supporting onion growers while ensuring adequate and affordable supplies for consumers. Robust security measures have also been put in place to prevent leakages and address security concerns during the transportation and disposal of large quantities of onions through railway rakes.
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