NEW DELHI: Onion prices have risen sharply in recent weeks, prompting the government to step up supplies from its buffer stock through a special rail initiative aimed at cooling wholesale and retail prices.
The government has started transporting onions by rail from Nashik in Maharashtra to five major cities — Delhi, Chennai, Kochi, Madurai and Guwahati, under the ‘Kanda Express’ initiative.
As part of the latest intervention, over 800 tonnes of buffer-stock onions will be dispatched from Lasalgaon in Nashik to Delhi on Monday.
The immediate focus is to release large quantities of onions at major mandis so that wholesale prices come down. A sustained decline in wholesale rates could eventually translate into lower retail onion prices, particularly in Delhi-NCR.
Onion prices have increased by 59%, leading the government to intensify market intervention despite maintaining that overall availability remains comfortable.
Seasonal price movements in onions can put pressure on consumers as supplies from different crop cycles change. The Centre, however, said the country has sufficient onion stocks to meet domestic demand in the coming months.
The government is also relying on its onion buffer stock to intervene in the market whenever prices require action.
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