Onion prices in India jumped to an average of Rs 42 per kg on Saturday — 45% higher than last year and 19% more than last month — according to a Business Today report on rising prices of the key kitchen commodity. In response, the central government will begin offloading its buffer stock and will operate the "Kanda Express" (trains transporting onions) from Nasik to Delhi, Chennai, Kochi and Guwahati starting Monday, the report said. The move targets regions where prices are higher than the national average, as the government steps in to check rising prices across different regions.
Price picture: onion and sugar
According to consumer affairs department data cited in the report, retail onion prices in Delhi stood at Rs 65 a kg, against Rs 35 a year back. In Chennai, onion was selling at Rs 58 a kilo as against Rs 33 last year. Onion prices are elevated in parts of Kerala and Assam as well, the report noted. Retail prices of sugar are also on the rise: loose sugar sold at Rs 62.5 per kg on Saturday, compared with Rs 46 a kilo a month back. In Delhi and Mumbai, retail prices of the sweetener were Rs 65 and Rs 69 a kilo, respectively.
| Item | Market | Saturday price | Year-ago price | Month-ago price |
|---|---|---|---|---|
| Onion | Delhi | Rs 65/kg | Rs 35/kg | — |
| Onion | Chennai | Rs 58/kg | Rs 33/kg | — |
| Onion | National average | Rs 42/kg | 45% higher | 19% higher |
| Sugar (loose) | National retail | Rs 62.5/kg | 34% higher | 28.5% higher |
| Sugar | Delhi | Rs 65/kg | — | — |
| Sugar | Mumbai | Rs 69/kg | — | — |
Government intervention: calibrated offloading and Kanda Express
Officials said the kitchen staple will be offered at a lower price in a calibrated manner, considering that traders may be pushing up prices artificially, according to the Business Today report. They added that there is sufficient stock both with the government and farmers to meet demand in the coming months. The food ministry too said there is enough sugar available. The last time the government operated the Kanda Express from Nasik to Delhi and other parts of the country to curb rising prices was in October 2024.
Supply-side pressures: Maharashtra output and buffer procurement
Market insiders said reports of a decline of 5% to 7% in the kharif onion output in Maharashtra — the largest producer among states — have contributed to the rise in prices. Farmers' cooperative NAFED and National Cooperative Consumers' Federation (NCCF) have procured around 1.2 lakh tonnes of onion for the current fiscal year as buffer stock. Earlier in May, these agencies fixed the procurement price of onion at Rs 1,270 per quintal, but revised it to Rs 2,645 last week to accelerate procurement, the report said. Onion production in the 2025-26 crop year (July-June), according to the second advance estimate of the agriculture ministry, is at 307 lakh tonnes, similar to production in the 2024-25 crop year.
What it means for buyers and traders
For commodity traders and procurement teams, the reported data points signal why the government is stepping in. Prices are above the national average in Delhi, Chennai and parts of Kerala and Assam — the destinations for the Kanda Express trains. The buffer stock procured by NAFED and NCCF, around 1.2 lakh tonnes, will be offloaded in a calibrated manner, according to officials. The revised procurement price of Rs 2,645 per quintal, up from Rs 1,270 in May, reflects the government's effort to accelerate purchases. Traders also have the October 2024 Kanda Express operation as a reference for how the government has previously moved onion supplies to curb price rises. On the sugar side, the food ministry's assurance of sufficient availability accompanies a 28.5% month-on-month jump in loose sugar prices to Rs 62.5 per kg.
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