As retail onion prices surge 59 per cent year-on-year, the Centre has begun transporting bulk onion stocks through dedicated railway rakes – the ‘Kanda Express’ – from Nashik in Maharashtra to major consumption centres, Consumer Affairs Secretary Nidhi Khare said on Monday. The move is aimed at boosting supplies and containing the seasonal rise in onion prices.
Khare said that the stocks currently being loaded onto these rakes are expected to reach the identified centres by Wednesday.
Prices up sharply
According to Consumer Ministry data, the all-India average retail price of onion rose 59 per cent year-on-year to Rs 43.53/kg on August 24, from Rs 27.37/kg a year ago. The average wholesale price was up 68 per cent at Rs 35.58/kg, against Rs 21.23/kg in the year-ago period.
Among major cities, retail onion prices on Monday stood at Rs 60/kg in Chennai (Rs 33 a year ago), Rs 55/kg in Delhi (Rs 35) and Rs 53/kg in Kolkata.
“Initially, the onion will be supplied to five major consumption centres, namely Chennai, Madurai, Delhi, Ernakulam and Guwahati, with additional destinations to be included subsequently based on emerging market requirements,” Khare told PTI.
She said that the onion buffer stock maintained in Nashik is being transported in bulk through dedicated railway rakes, with the supplies to be distributed across wholesale and retail markets in selected major consuming centres. The onions will be sold at Rs 35 per kg in retail markets through the National Cooperative Consumers’ Federation (NCCF) and NAFED, the official said.
Khare said the government is keeping a close watch on prices to take further steps. “Mandi prices in Nasik are ruling higher than Delhi, which should be the case. It means cartelisation and speculation are at work,” she noted.
Onion buffer stock
The onion buffer stock is the Centre’s strategic reserve, built up primarily to cushion the market against price spikes when supplies tighten. It is procured mainly through agencies such as NAFED and the NCCF under the Price Stabilisation Fund, and released into the market in a calibrated manner during periods of seasonal shortage or sharp price escalation.
“The government has a buffer stock of 1.21 lakh tonnes of onion for the current year, sufficient to meet the demand,” said Khare.
Onion prices typically rise during August and September due to increased festive demand, weather-related disruptions, supply-chain movements and changing consumption patterns.
(With PTI inputs)
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