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Bulk sale of onions stabilised prices across markets, says Centre

Second train carrying 840 tonnes of onions from Nashik reached Delhi on Wednesday

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Onion (Photo: Shutterstock)

Sanjeeb Mukherjee Delhi

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The retail price of onions has stabilised in major markets of Andhra Pradesh, Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu and New Delhi since the bulk sale through trains began on October 20, the Centre claimed on Wednesday, as a second rake carrying 840 tonnes of buffer onions reached the national capital.
 
The second train from Nashik reached Delhi on Wednesday, days after 1,600 tonnes of onions arrived through ‘Kanda Express’ on October 20.
 
Most of the onions will be used for retail sale at Rs 35 per kg, unlike the first consignment which was used to cool down wholesale prices through auctions.  The National Cooperative Consumer Federation of India (NCCF) procured the first railway train, while the second train was brought by the National Agricultural Cooperative Marketing Federation of India (NAFED).
   
Data shows that wholesale prices of onions in Delhi’s Azadpur Mandi have softened by almost 5 per cent since October 22.
 
The Central government said that the wholesale onion prices in Nashik mandi also declined from the peak of Rs 47 per kg on September 24  and is currently trading at around Rs 40 per kg.
 
According to an official statement, bulk transportation of onions by rail rake has been adopted, for the first time, for timely, reliable and cost-effective delivery of onions to various regions. 
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NAFED also transported 840 tonnes of onions by rail rake from Nashik to Chennai which arrived on October 26. Another rail rake from Nashik to Guwahati left Nashik early Wednesday with 840 tonnes of onions procured by NCCF.
 
Bulk shipments by rail augment the continuous transportation of onions by trucks across the country.  
 
The government had procured 470,000 tonnes of rabi onion for the price stabilisation buffer this year and started liquidating the stocks from September 2024 through retail sales at a price point of Rs 35 per kg and also through bulk sales in major mandis across the country.
 
Over 140,000 tonnes of onion in the buffer have been dispatched from Nashik and other source centres so far to consuming centres through trucks. NCCF covered 104 destinations in 22 states, while NAFED covered 52 destinations in 16 states in their onion disposal.
 
The agencies have also partnered with retail chains such as SAFAL, Kendriya Bhandar and Reliance Retail for distribution of onions to retail consumers at Rs 35 per kg. In addition, 86,500 tonnes of onion have been allotted to nine state governments or cooperative societies for retail distribution.
 
Onion prices in the retail markets jumped in September due to delayed harvest and damage to the standing kharif crop in Karnataka and other southern states.

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First Published: Oct 30 2024 | 7:26 PM IST

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