In an effort to control rising onion prices ahead of the festive season, the government will transport 1,600 tonnes of buffer stock of onions from Maharashtra to Delhi using railways for the first time. The initiative, dubbed ‘Kanda Express,’ will depart from Lasalgaon Railway Station in Maharashtra and arrive at Kishanganj Railway Station in Delhi on October 20, according to Consumer Affairs Secretary Nidhi Khare, who made the announcement on Thursday.
The government aims for this bulk movement to help stabilise prices in the Delhi-NCR region, where buffer stock onions are currently sold at a subsidised rate of Rs 35 per kg, while retail prices in some cities have soared to Rs 75 per kg.
“This marks a historic first for rail transport of onions,” Khare said, adding that similar transport arrangements will be extended to Lucknow, Varanasi, and northeastern states, including Assam, Nagaland, and Manipur.
To prevent damage, the government is also negotiating with Concord for sealed container transport. The onions will be auctioned at market rates to intervene in the wholesale sector.
Khare highlighted the cost-effectiveness of this measure, stating that transporting one rake (equivalent to 56 trucks) from Nasik to Delhi via rail costs Rs 70.20 lakh, compared to Rs 84 lakh by road, saving Rs 13.80 lakh per rake.
Since September 5, the government has been selling buffer stock onions at subsidised rates through mobile vans, NCCF and NAFED outlets, e-commerce platforms, Mother Dairy’s Safal outlets, and Kendriya Bhandar. To further enhance retail intervention, the number of mobile vans will increase from 600 to 1,000 ahead of Diwali.
Out of the 4.7 lakh tonnes buffer stock, 91,960 tonnes have been allocated to NCCF and NAFED, with 86,000 tonnes dispatched to various states including Gujarat, Maharashtra, Karnataka, Goa, Rajasthan, Bihar, Uttar Pradesh, and Manipur.
The government is hopeful that these measures, along with the expected arrival of fresh crops from Maharashtra, will stabilise onion prices. The average purchase price for buffer stock onions is Rs 28 per kg.
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Although onion export prices remain stable, quantities are being managed despite a slight increase after the removal of the minimum export price and a reduction in export duty from 40 per cent to 20 per cent.
NCCF Managing Director Anice Joseph Chandra, Joint Secretary of the Consumer Affairs Ministry Anupam Mishra, and other officials attended the media briefing.
(With inputs from PTI)
