In a significant move to stabilize onion prices, the National Agricultural Cooperative Marketing Federation of India (NAFED) delivered another 840 MT of onions to Delhi's Kishanganj Railway Station on October 29, 2024, as part of its price stabilization efforts under the Department of Consumer Affairs.
This shipment follows a previous bulk delivery of 1,600 MT by the National Cooperative Consumers' Federation of India (NCCF) on October 20, reinforcing onion availability in the Delhi-NCR region. A portion of this stock will be released in Azadpur Mandi to support market supply, while another segment will be sold to retail consumers at Rs 35 per kg.
For the first time, rail rakes are being used for large-scale onion transport to ensure cost-effective and efficient delivery to key regions. NAFED recently sent 840 MT of onions by rail from Nashik to Chennai, with another shipment currently en route to Guwahati to bolster supply in the northeastern states. Rail-based bulk transportation complements ongoing truck-based deliveries nationwide.
The government procured 4.7 lakh tonnes of rabi onions for a price stabilization buffer, initiating its distribution on September 5. Since then, over 1.4 lakh tonnes of onions from buffer stocks have been dispatched to various markets, with NCCF covering 104 destinations across 22 states and NAFED serving 52 destinations in 16 states. Distribution channels, including partnerships with SAFAL, Kendriya Bhandar, and Reliance Retail, ensure consumers access onions at the stabilized price of Rs 35 per kg.
This strategy has effectively stabilized onion retail prices in key states like Andhra Pradesh, Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu, and Delhi, with the national average remaining steady through October. The recent rail shipment to Guwahati is expected to further improve availability and ease prices in the Northeast and throughout India, with mandi prices in Nashik already seeing a decline from Rs 47 per kg in September to Rs 40 per kg by late October.
