Image showing onions.
Credit: PTI File Photo
New Delhi: Ahead of festival season, the Centre has decided to operate a special goods train dubbed 'Kanda Express’ to transport onions from Maharashtra to Delhi.
The first such initiative using rail transport for the kitchen staple, the train is expected to bring 1,600 tonnes of buffer stock to the national capital from Maharashtra's Lasalgaon, which is also known as onion hub.
To improve the availability of onions in the national capital and cool down the prices, the government is taking this initiative. The first special rake will reach Delhi on October 20.
"This rail transport initiative marks a historic first," Consumer Affairs Secretary Nidhi Khare announced on Thursday, adding that similar arrangements will be extended to Lucknow, Varanasi and northeastern states including Assam, Nagaland and Manipur.
The government expects this bulk movement to help stabilise prices in the Delhi-NCR ( National Capital Region), where buffer stock onions are currently being sold at a subsidised rate of Rs 35 per kg. Currently, retail prices are ruling high up to Rs 75 per kg in different cities.
The government is also in talks with Concord for sealed container transport to minimise damage. The onions will be auctioned at prevailing market rates for wholesale intervention.
Stating that the decision comes as a cost-effective and efficient measure, the Secretary 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 subsidised rates since September 5 through various channels including mobile vans in Delhi.
Of the 4.7 lakh tonnes buffer stock, the Secretary 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 stabilisation. The average purchase price of buffer stock onions stands at Rs 28 per kg.