Government Ramps Up Onion Supply To Control Prices; 840 Tonne Arrive In Delhi By Rail

The government on Wednesday said about 840 tonne of buffer onion arrived via rail at Delhi's Kishanganj railway station, as part of its multi-pronged strategy to control prices. This marks the second major rail delivery after 1,600 tonne reached Delhi on Oct. 20 through 'Kanda Express', an official statement said.

The shipment, procured by NAFED under the price stabilization fund, will primarily be released through Azadpur Mandi, with a portion earmarked for retail sale at Rs 35 per kg.

Retail prices of onion are ruling at Rs 60-80 per kg in the national capital depending upon the quality and locality.

In a first, the government has adopted rail transport for timely and cost-effective delivery of onions across regions.

NAFED earlier transported 840 MT to Chennai on Oct. 26, while another consignment of similar quantity departed from Nashik for Guwahati early Wednesday.

The government had built a buffer of 4.7 lakh tonne during the rabi season and began releasing from Sept. 5 through retail and bulk channels.

"Over 1.40 lakh tonne have been dispatched from Nashik and other centres via road transport," the statement said.

The National Cooperative Consumers' Federation has reached 104 destinations across 22 states, while NAFED covers 52 locations in 16 states. The agencies have partnered with SAFAL, Kendriya Bhandar and Reliance Retail for Rs 35 per kg retail sales.

Additionally, 86,500 tonne has been allocated to nine state governments and cooperative societies for retail distribution. The intervention has helped stabilise retail prices across major states including Andhra Pradesh, Maharashtra, Karnataka, UP, Tamil Nadu and Delhi, with the all-India average retail price remaining steady through October.

Wholesale rates at Nashik mandi have declined from Rs 47 per kg on Sept. 24 to Rs 40 currently. The Guwahati rail shipment is expected to improve availability in northeastern states and moderate regional prices, the statement added.