Come October 20, a train will chug into Delhi from Nashik in Maharashtra filled not with passengers, but with onions. For the first time, the central government has decided to pump 1,600 tonnes of onions through 42 railway wagons into the Delhi wholesale markets to cool down prices ahead of Diwali.
This would be the largest-ever wholesale intervention by the Centre in onions. The onion consignment will be sold through auction at a base rate of Rs 35/kg. Current retail market rates of onions in Delhi are hovering over Rs 75/kg.
The average cost of procuring onions from farmers this time was Rs 28/kg while last year it was around Rs 17/kg.
Sources said Delhi and its nearby markets get a daily supply of around 2,500-2,600 tonnes of onions, and this one single train (equal to 53 truck loads of onions) will deliver more than half of that quantity in a single day.
The train, which is expressively called the ‘Kanda Express’ (the Marathi term for onion is kanda), will help in stabilizing the retail rates.
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"This rail transport initiative marks a historic first," Consumer Affairs Secretary Nidhi Khare told reporters, adding that similar arrangements will be extended to Lucknow, Varanasi, and northeastern states, including Assam, Nagaland, and Manipur.
She said declining Mandi prices in Nashik will soon start reflecting in retail rates as well.
The train also perfectly fits into the ruling Centre's pro-farmer drive as Maharashtra goes to polls in the next few weeks. Nashik is one of the country’s largest onion trading centres.
Several commentators had attributed the Mahayuti’s reverses in certain pockets in the 2024 general elections to the ire of onion farmers. Since then the government has eased export curbs imposed on onions to shore up its prices.
Meanwhile, Khare also said that the government is also in talks with the Container Corporation of India for sealed container transport to minimize damage to onions in transit.
Stating that the decision comes as a cost-effective and efficient measure, she 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 subsidized 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, Khare 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 stabilization.
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.