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Business Updates

Second train with 840 metric tonnes of onion arrives in Delhi

Onions to be released in Azadpur Mandi to augment availability, part stock to retail for Rs 35 per kg

FoodTechBiz Desk

On 30 October 2024, another 840 MT of onions procured by National Agricultural Cooperative Marketing Federation of India (NAFED) under the price stabilization fund of Department of Consumer Affairs has arrived at Kishanganj Railway Station of Delhi for disposal in Delhi-NCR. This is the second bulk transportation of onions by train to Delhi-NCR after NCCF brought 1,600 MT of onions to Kishanganj Station on 20 October 2024 by Kanda express. Most of the onions will be released in Azadpur Mandi to augment overall availability in the market while part of the stock will go for retail sale at Rs 35 per kg.

Bulk transportation of onions by rail rake has been adopted, for the first time, for a timely, reliable and cost-effective delivery of onions to various regions. NAFED had earlier transported 840 MT of onions by rail rake from Nashik which arrived at Chennai on 26th October, 2024. Another rail rake from Nashik to Guwahati has left Nashik early this morning with 840 MT of onions procured by NCCF. Bulk shipments by rail augments the continuous transportation of onions by trucks across the country.   

The government had procured 4.7 lakh tons of rabi onion for the price stabilization buffer this year, and started the release from 5th September, 2024 through retail sale at Rs 35 per kg and also through bulk sales in major mandis across the country. Till date over 1.40 lakh tonnes of onion in the buffer have been dispatched from Nashik and other source centres to consuming centres through trucks by road transport. As on date, NCCF has covered 104 destinations in 22 States and 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 MT of onion has been allotted to 9 States Governments/Cooperative Societies for retail distribution.

Since the start of onion disposal till date, the retail prices of onion have substantially stabilized in major States such as Andhra Pradesh, Maharashtra, Karnataka, UP, Tamil Nadu and Delhi. All-India average retail prices remained largely stable during October. The onion shipment by rail to Guwahati will enhance availability in North-eastern States and is expected have dampening impact on prices in the region and also on the all-India average. Mandi prices in Nashik mandi also declined from the peak of Rs.47 per kg on 24th September and is currently at 40 kg on 29th October, 2024.

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