The Department of Consumer Affairs, Government of India announced that 1,600 MT (42 BCN wagons that is approximately 53 trucks) of onions procured by National Cooperative Consumers Federation of India Ltd. (NCCF) under the price stabilization fund is being shipped by rail by the Kanda fast train from Nashik to Delhi NCR. It is for the first time that bulk transport of onions by rail rake has been adopted under price stabilization intervention. The onion shipment is scheduled to arrive by 20 October 2024 and the stocks will be released in Delhi-NCR which will substantially increase the availability to consumers during this festive season.

Nidhi Khare, secretary, Department of Consumer Affairs, Government of India, during a press briefing informed that railways as a mode of onion transportation is set to gain importance as more destinations are being added to bolster the pace of disposal. Shipments by rail rake to Lucknow and Varanasi will be scheduled in next few days. The Department has also requested Indian Railways to allow transportation of onion rakes from Nashik to multiple locations across the North-eastern region which would include (i) NJP: New Jalpaiguri (Siliguri), (ii) DBRG- Dibrugarh, (iii) NTSK- New Tinsukia, and (iv) CGS: Changsari. This will ensure wider availability of onions in different regions of India ensuring its availability at a very reasonable price to consumers.

The government had procured 4.7 lakh tons of rabi onion for the price stabilization buffer this year, and started the release from 5 September, 2024 through retail sale at Rs.35 per kg and also through bulk sales in major mandis across the country. Till date about 92,000 MT of onion in the buffer has been dispatched from Nashik and other source centres to consuming centres through trucks by road transport. As on date, NCCF has covered 77 destinations in 21 States and NAFED covered 43 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 MT of onion has been allotted to 9 States Governments/Cooperative Societies for retail distribution.

Since the start of onion disposal till date, the rising trend in onion prices have been substantially arrested. Average retail prices in major States like UP, Haryana, Maharashtra, Odisha, Punjab, Jharkhand and Telangana have come down in recent days in comparison to the level in first week of September, 2024. Mandi prices in Lasalgaon also declined from the peak of Rs.47 per kg on 24 September to Rs.40 kg on 15 October 2024. 

The initiative taken up by NCCF for bulk transportation of onion by rail rake is a significant measure to ensure abundant supply of onions in the market. Railway mode provides a cost-effective and expeditious bulk transportation of onions to consuming centres. This efficient mode of transportation will contribute to the timely and reliable delivery of onions to various regions.

In respect of tomato, Secretary, Consumer Affairs stated that recent surge in prices is because of excess rains and high moisture level in major tomato producing areas of Andhra Pradesh, Karnataka and Maharashtra. The adverse weather condition together with incidences of disease attack in certain pockets impacted the harvest and also the shelf life of tomatoes. The supply situation is set to improve in coming days with increased arrivals from Maharashtra and Madhya Pradesh which would bring down the tomato prices.