Onion prices surge; Centre to roll out Kanda Express from Monday

Onion prices surge; Centre to roll out Kanda Express from Monday
Centre to roll out ‘Kanda Express’ from Monday as onion prices surge 45% year-on-year

NEW DELHI: In its bid to check rising prices of onion across different regions, govt will start offloading its buffer stock. As average price of the key kitchen commodity increased to Rs 42 per kg on Saturday, 45% higher than last year and 19% more than last month, Centre will operate from Monday Kanda Express (trains transporting onions) from Nasik to Delhi, Chennai, Kochi and Guwahati, where prices are higher than the national average.As per consumer affairs department data, the retail price of onion was Rs 65 a kg in Delhi compared with 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. Retail prices of sugar also continue to rise; on Saturday, it was selling at Rs 62.5 per kg 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.On govt intervention to check onion prices, 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. They added that there is sufficient stock both with govt and farmers to meet demand in coming months. Food ministry too said there is enough sugar available.The last time govt operated Kanda Express from Nasik to Delhi and other parts of the country to curb rising prices was in Oct 2024.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. Earlier in May, these agencies had fixed the procurement price of onion at Rs 1,270 per quintal but revised it to Rs 2,645 last week to accelerate procurement.Onion production in 2025-26 crop year (July-June), according to the second advance estimate of the agriculture ministry, is at 307 lakh tonnes, similar to the production in 2024-25 crop year.Meanwhile, retail prices of loose sugar are on the rise. On Saturday, it was selling at Rs 62.5 per kg, 34% higher than a year back and 28.5% more than a month back.

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