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  1. Delhi gets second rail shipment of onions; retail stock capped at ₹35/kg

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Delhi gets second rail shipment of onions; retail stock capped at ₹35/kg

Upstox

2 min read | Updated on October 30, 2024, 17:51 IST

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SUMMARY

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.

Currently, retail prices of onion are over ₹60 per kg, depending on the quality and locality in the national capital

Currently, retail prices of onion are over ₹60 per kg, depending on the quality and locality in the national capital (PTI Photo)

A second shipment of 840 metric tonnes of onions, procured under the Indian government's price stabilisation program, arrived at Delhi's Kishanganj Railway Station on Wednesday. The shipment, delivered by the National Agricultural Cooperative Marketing Federation of India (NAFED), aims to boost onion availability in the Delhi-NCR amid persistently high retail prices.

This is the second bulk delivery to the capital after the National Cooperative Consumers’ Federation (NCCF) shipped 1,600 tonnes on October 20 via the “Kanda Express.”

Most of the fresh consignment will be directed to Azadpur Mandi, one of the largest wholesale produce markets in Asia, with a portion earmarked for retail sales across Delhi-NCR at a subsidised price of ₹35 per kilogram.

An additional 840 metric tonnes from Nashik was dispatched early Monday to Guwahati, aimed at easing supply constraints in the northeastern states.

The government's use of rail rakes to expedite onion supply follows delays in road transportation, which struggled to keep up with demand and prevent price rise.

Despite the inflow of bulk onions into NCR markets since October 20, retail prices remain high, with onions selling at ₹57-₹70 per kg. In Mumbai, onion prices reached ₹63 per kg, up from ₹50 last year, while Chennai saw prices climb to ₹67 per kg from ₹60, and Ranchi recorded an increase to ₹58 per kg from ₹50.

Onion prices, which typically rise in August until the new kharif harvest in November, remain elevated in several markets. Online retailers such as Amazon Fresh and BigBasket currently list onions at around ₹69 per kg.

The government began releasing onions from its buffer stock on September 5, retailing them at ₹35 per kg and supplying them in bulk to major markets nationwide. So far, over 1.4 lakh tonnes of rabi onion have been transported from Nashik and other hubs, with NCCF and NAFED covering 104 destinations across 22 states and 52 destinations in 16 states, respectively.

Around 86,500 metric tonnes have been allocated to nine states and cooperative societies for retail distribution, and mobile vans are supplying onions to major consumer hubs.

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