The Centre has begun moving bulk onion stocks from Nashik in Maharashtra to major consuming centres through dedicated railway rakes, informally called the ‘Kanda Express’, as it steps up efforts to increase supplies and contain the seasonal rise in prices.
As reported by news agency PTI, Consumer Affairs Secretary Nidhi Khare said the first consignments being loaded onto the railway rakes were expected to reach their destinations by Wednesday. The government will initially send onions to Chennai, Madurai, Delhi, Ernakulam and Guwahati, with more cities likely to be added depending on market conditions.
The intervention comes as onion prices have risen sharply over the past year. According to Consumer Affairs Ministry data, the all-India average retail price stood at Rs 43.53 per kg on August 24, up 59% from Rs 27.37 per kg a year earlier. The average wholesale price rose 68% year-on-year to Rs 35.58 per kg.
Onions to be sold at Rs 35 per kg
The Centre is releasing onions from its buffer stock maintained in Nashik and transporting them in bulk by rail to areas where prices are relatively high.
Once the consignments reach their destinations, the onions will be supplied to both wholesale and retail markets. At the retail level, they will be sold at Rs 35 per kg through the National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED).
Retail prices in several major cities have already moved well above this level. On Monday, onions were selling at around Rs 60 per kg in Chennai, compared with Rs 33 per kg a year earlier. Prices stood at about Rs 55 per kg in Delhi, against Rs 35 last year, and Rs 53 per kg in Kolkata.