Govt to transport 1,600 MT of onions to Delhi via train for price stabilisation

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To stabilize onion prices in country, the government has decided to transport 1,600 million tonnes (MT) of onions by rail from Nashik to Delhi—the first time that bulk transport of onions by rail rake has been adopted under price stabilisation intervention.

Consumers Affairs Secretary Nidhi Khare said the train, called ‘Kanda Express’, is scheduled to arrive by October 20 in Delhi which would substantially increase the availability of onions to consumers during the festive season.

The onions were procured by National Cooperative Consumers Federation of India Ltd. (NCCF) under the price stabilisation fund, said Khare.

The government plans to include more destinations for transportation of onions to ensure wider availability in different regions of the country. Shipments by rail rake to Lucknow and Varanasi would be scheduled in the next few days. The department has also requested Indian Railways to allow transportation of onion rakes from Nashik to multiple locations across the North-eastern region including Siliguri, Dibrugarh, New Tinsukia and Changsari.

“The initiative taken up by NCCF for bulk transportation of onion by rail rake is a significant measure to ensure abundant supply of onions in the market. Railway mode provides a cost-effective and expeditious bulk transportation of onions to consuming centres,” the government said in a press release.

The government had procured 4.7 lakh tons of rabi onion for the price stabilization buffer this year, and started the release from September 5 through retail sale at Rs 35 per kg and also through bulk sales in major mandis across the country. Till date about 92,000 MT of onion in the buffer has been dispatched from Nashik and other source centres to consuming centres through trucks by road transport, the government said.

As on date, NCCF has covered 77 destinations in 21 states and NAFED covered 43 destinations in 16 states in their onion disposal.

The agencies have also partnered with retail chains such as SAFAL, Kendriya Bhandar and Reliance Retail for distribution of onions to retail consumers at Rs 35 per kg. In addition, 86,500 MT of onion has been allotted to nine states governments and cooperative societies for retail distribution.

The government said the rising trend in onion prices have been substantially arrested since the start of onion disposal. Average retail prices in major states like UP, Haryana, Maharashtra, Odisha, Punjab, Jharkhand and Telangana have come down in recent days in comparison to the level in first week of September, it added.

Mandi prices in Lasalgaon also declined from the peak of Rs 47 per kg on September 24 to Rs 40 kg on October 15, informed Khare.

For the recent surge in tomato prices, Khare blamed excess rains and high moisture level in major tomato producing areas of Andhra Pradesh, Karnataka and Maharashtra. The incidences of disease attack in certain pockets also impacted the harvest and the shelf life of tomatoes, she added.

Khare expects tomato prices to decline with the supply situation improving in coming days due to increased arrivals from Maharashtra and Madhya Pradesh.