‘Kanda Trains’ to help ease onion prices before Diwali

With an intent to curb onion prices before Diwali, the government has decided to flood markets across the country with onions disposing from its buffer stocks. For the first time it will transport the kitchen essential by railway rakes to major consumption centers and states.

It will also sell onions via ecommerce platforms such as Zepto, private retail stores such as Reliance Retail and Safal. The government will also be selling onions in the retail market through Kendriya Bhandars and mobile vans.

Onion prices ruled close to Rs 100 per kg in retail across major several large consumption centres compelling the government to offload from its own stocks in the retail market at subsidized price of Rs 35 per kilo starting last month.

Food prices went up to 9.47% in September from 3.26% in August, showed government data, with vegetable prices rising 48.7%, compared to a drop of 10% in August.

“….1,600 MT (equivalent to approximately 53 trucks) of onions procured by NCCF under the price stabilisation fund of the Department of Consumer Affairs is being shipped by rail by the Kanda fast train from Nashik to Delhi NCR,” said Nidhi Khare, secretary, Department of Consumer Affairs on Thursday.

The onion shipment is scheduled to arrive in Delhi NCR by October 20, 2024 and the stocks will be released in the wholesale market (across mandis) to substantially increase the availability to consumers during this festive season.Shipments by rail rake to Lucknow, Varanasi and north eastern states will be scheduled in next few days, she added.Out of the total government buffer of 0.47 Million Tonnes, 91,960 tonnes will be disposed off as a part of the effort to bring don prices which have been ruling high since the government removed restrictions on exports.

This is the highest quantity of intervention in one go, the official said.

It is also giving onions to states – Maharashtra, Bihar, Gujarat, Manipur, Nagaland, Goa, Uttar Pradesh and Karnataka to sell through their own network to bring down prices.

Tomatoes

The government is also keeping a tight vigil on tomato prices, Khare said, adding that excessive rainfall in Karnataka, which contributes 40% to tomato arrivals, damaged the crops. However, with harvest starting in Maharashtra, prices are expected to fall.