In a significant move to control spiralling onion prices ahead of the festive season, the government will transport 1,600 tonnes of buffer stock via railways from Maharashtra to Delhi — the first such initiative using rail transport for the kitchen staple.
The special rake, dubbed 'Kanda Express', will depart from Maharashtra's Lasalgaon Railway Station and reach Delhi's Kishanganj Railway Station on October 20, Consumer Affairs Secretary Nidhi Khare announced on Thursday.
The government expects this bulk movement to help stabilise prices in the Delhi-NCR region, where buffer stock onions are currently being sold at a subsidised rate of Rs 35 per kg.
Currently, retail prices are ruling high up to Rs 75 per kg in different cities.
"This rail transport initiative marks a historic first," Khare said, adding that similar arrangements will be extended to Lucknow, Varanasi and northeastern states including Assam, Nagaland and Manipur.
The government is also in talks with Concord for sealed container transport to minimise damage.
The onions will be auctioned at prevailing market rates for wholesale intervention.
Stating that the decision comes as a cost-effective and efficient measure, the secretary said transporting one rake (equivalent to 56 trucks) from Nasik to Delhi costs Rs 70.20 lakh by rail, compared to Rs 84 lakh by road — translating to savings of Rs 13.80 lakh per rake.
The government has been selling buffer stock onions at subsidised rates since September 5 through various channels including mobile vans, NCCF and NAFED outlets, e-commerce platforms, Mother Dairy's Safal outlets, and Kendriya Bhandar.
To further strengthen retail intervention, the number of mobile vans will be increased from 600 to 1,000 ahead of Diwali.
Of the 4.7 lakh tonnes buffer stock, the Secretary said 91,960 tonnes have been allocated to NCCF and NAFED, while 86,000 tonnes have been dispatched to various states including Gujarat, Maharashtra, Karnataka, Goa, Rajasthan, Bihar, Uttar Pradesh and Manipur.
With these measures and expected fresh crop arrivals from Maharashtra, the government is optimistic about price stabilisation.
The average purchase price of buffer stock onions stands at Rs 28 per kg.
The government said onion export prices remained stable, but quantities are under control despite a slight increase after the removal of the minimum export price and reduction in duty from 40 per cent to 20 per cent.
NCCF managing director Anice Joseph Chandra, joint secretary in the consumer affairs ministry Anupam Mishra and other officials were present at the media briefing.
