The Department of Consumer Affairs, Government of India, has announced a significant step in stabilizing onion prices through the bulk transportation of onions by rail. For the first time, 1,600 MT of onions, procured by the National Cooperative Consumers Federation of India Ltd. (NCCF) under the Price Stabilisation Fund, is being shipped via the Kanda fast train from Nashik to the Delhi NCR region. This onion consignment, consisting of 42 BCN wagons (approximately 53 trucks), is expected to reach Delhi NCR by October 20, 2024. This move will substantially boost onion availability for consumers during the festive season.
During a press briefing, Nidhi Khare, Secretary of the Department of Consumer Affairs, emphasized that the use of railways as a mode of onion transportation will gain further importance as additional destinations are being included to expedite the process. Shipments to Lucknow and Varanasi are expected in the coming days, with plans to extend onion transportation to the North-eastern regions, including New Jalpaiguri (Siliguri), Dibrugarh, New Tinsukia, and Changsari. This effort aims to ensure a wider distribution of onions at affordable prices across India.
Earlier this year, the government procured 4.7 lakh tons of rabi onions for the Price Stabilisation Buffer, and since September 5, 2024, it has been releasing the stock at a retail price of Rs.35 per kilogram. To date, around 92,000 MT of onions from Nashik and other source centers have been transported to consumption hubs across the country, primarily by road. NCCF has covered 77 destinations in 21 states, while NAFED has reached 43 destinations in 16 states. Additionally, retail chains such as SAFAL, Kendriya Bhandar, and Reliance Retail have partnered with the government to make onions available to consumers at Rs.35 per kilogram.
The steady release of onions from the buffer stock has effectively halted the price surge. In key states like Uttar Pradesh, Haryana, Maharashtra, Odisha, Punjab, Jharkhand, and Telangana, retail onion prices have dropped in recent days compared to early September levels. Mandi prices in Lasalgaon, the largest onion market in India, also fell from Rs.47 per kilogram on September 24 to Rs.40 per kilogram on October 15, 2024.
The initiative to transport onions via rail by NCCF is expected to increase market supply, offering a cost-effective and faster solution for bulk transport. This efficient method ensures that onions are delivered timely and reliably to various regions.
In a related development, Nidhi Khare also addressed the recent spike in tomato prices, which has been attributed to excessive rainfall and high moisture levels in major tomato-producing states like Andhra Pradesh, Karnataka, and Maharashtra. The adverse weather conditions and disease outbreaks in certain areas have affected both the harvest and the shelf life of tomatoes. However, the situation is expected to improve soon, as increased arrivals from Maharashtra and Madhya Pradesh are anticipated to help stabilize tomato prices.
