
To provide relief to the general public from the skyrocketing prices of onion in retail and wholesale markets, the Consumer Affairs Ministry has released a large part of its strategic buffer stock in the markets. Indian Railways’ special goods train ‘Kanda Express’ has left for the national capital Delhi and North India from Lasalgaon (Nashik), the largest onion producing hub of Maharashtra, carrying a consignment of hundreds of tonnes of onions.
There has been a huge reduction in logistics cost by sourcing onions through rail transport as compared to road transport and time has been saved. With the arrival of the train, the shortage of supply in the wholesale markets will be completely removed and there will be direct pressure on the middlemen creating artificial shortage.
Relief to common consumer at concessional rate of ₹35 per kg
While onion was being sold at ₹55 to ₹70 per kg in the open market, the government has made arrangements to make it available directly to the general public at an affordable rate of ₹35 per kg.
This model of bringing down retail prices by selling the buffer stock purchased under the Price Stabilization Fund of the Central Government at a concessional rate is proving to be very effective. This initiative has been started with the aim of balancing the monthly kitchen budget of common families.
Direct supply started in more than 10 big cities including Delhi-NCR
With the operation of Kanda Express, onion distribution network has been activated in more than 10 major consumption centers of the country.
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North India: Delhi, Noida, Ghaziabad, Gurugram, Faridabad, Chandigarh, Ludhiana and Lucknow.
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Eastern and Central India: Varanasi, Patna, Ranchi, Kolkata and Guwahati.
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South India: Chennai, Coimbatore, Madurai, Kochi and Hyderabad.
Direct supply of buffer stock is being delivered to the local wholesale markets and retail distribution centers of all these cities so that price balance can be immediately restored at the regional level.
Cheap onion will reach every home through NCCF, NAFED and Kendriya Bhandar.
To make the sale of cheap onions smooth and transparent, the government has brought into play major national cooperative agencies:
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Mobile WAN Network: National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) are deploying their mobile vans in major residential areas, metro stations, weekly markets and slum settlements.
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Permanent Sales Centre: Stock worth ₹ 35 per kg is being made compulsorily available at all the more than 100 registered stores of Kendriya Bhandar and ‘Safal’ outlets of Mother Dairy.
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E-commerce and digital delivery: For the convenience of consumers in urban areas, arrangements are being made to deliver discounted onions at home in collaboration with ONDC and other quick-commerce platforms.
Strict warning against hoarders, adequate stock in the country
The Central Department of Consumer Affairs has clarified that there is adequate buffer stock of Kharif and Rabi season onions in the country and there is no actual shortage of any kind. The government has instructed state governments and local administrations to keep an eye on the warehouses of wholesale traders and take strict action against those involved in hoarding or profiteering.
Officials say that till the prices become normal and stable in the open market, there will be continuous supply of onion at ₹35 per kg to every corner of the country through ‘Kanda Express’.
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