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In a major effort to manage rising onion prices before the festive season, the government will move 1,600 tonnes of buffer stock by rail from Maharashtra to Delhi. This marks the first time the kitchen staple will be transported via rail.
The special train, named 'Kanda Express', will depart from Lasalgaon Railway Station in Maharashtra and arrive at Delhi's Kishanganj Railway Station on October 20, Consumer Affairs Secretary Nidhi Khare announced on Thursday.
The government is expecting that this large-scale movement will aid in stabilising prices in the Delhi-NCR area, where buffer stock onions are currently being sold at a subsidised rate of Rs 35 per kg. At present, retail prices are reaching as high as Rs 75 per kg in various cities.
“This rail transport initiative marks a historic first,” Khare stated, adding that similar plans will be implemented for other regions, including Lucknow, Varanasi, and northeastern states such as Assam, Nagaland, and Manipur.
Additionally, the government is in discussions with Concord to transport the onions in sealed containers to reduce the risk of damage. The onions will be auctioned at prevailing market prices to support wholesale intervention.
Describing the decision as both cost-effective and efficient, Khare mentioned that transporting one rake (equivalent to 56 trucks) from Nasik to Delhi by rail costs Rs 70.20 lakh, compared to Rs 84 lakh by road, saving Rs 13.80 lakh per rake.
Sale of onion buffer stocks as prices climb
Since September 5, the government has been selling onions from its buffer stock at subsidised rates through a variety of outlets, including mobile vans, NCCF and NAFED centres, e-commerce platforms, Safal stores operated by Mother Dairy, and Kendriya Bhandar.
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To enhance retail distribution, the number of mobile vans will be increased from 600 to 1,000 ahead of Diwali.
Of the 4.7 lakh tonnes of buffer stock, Khare mentioned that 91,960 tonnes have been allocated to NCCF and NAFED, while 86,000 tonnes have already been distributed to states such as Gujarat, Maharashtra, Karnataka, Goa, Rajasthan, Bihar, Uttar Pradesh, and Manipur.
The government is optimistic about stabilising onion prices with these measures, along with fresh arrivals from Maharashtra. The average purchase price of buffer stock onions is Rs 28 per kg.
Although onion export prices have remained stable, the government stated that export quantities are still controlled, even after the export duty was reduced from 40 per cent to 20 per cent and the minimum export price was removed.
(With inputs from agencies)
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