Now Reading: Kanda Express trains to bring down onion prices
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Kanda Express trains to bring down onion prices
Onion prices have surged across India, with retail rates reaching Rs 65 per kg in Delhi and Rs 58 per kg in Chennai. The spike is driven by a shortage of stored…
Onion prices have surged across India, with retail rates reaching Rs 65 per kg in Delhi and Rs 58 per kg in Chennai. The spike is driven by a shortage of stored Rabi onions, crop damage in Maharashtra, and delays in the Kharif harvest, tightening supplies.
The central government has begun releasing onions from its buffer stock and is launching special 'Kanda Express' trains to transport onions from Nashik to high-price markets. The move aims to stabilise prices and improve supply to affected regions.
Indian Opinion Analysis
Onion price spikes are a recurring political flashpoint, often linked to seasonal gaps between Rabi and Kharif harvests. The government's buffer stock, typically around 5 lakh tonnes, is designed to intervene during such shortfalls. The Kanda Express is a logistical fix that reduces transit time from Nashik, but its impact depends on the volume moved and the pace of the upcoming Kharif harvest. The real test will be whether arrivals in Delhi and Chennai can bring retail prices below Rs 50 per kg in the next two weeks.
The Centre manages onion prices through the National Cooperative Consumers' Federation (NCCF) and the Small Farmers Agribusiness Consortium (SFAC). Last year, similar interventions moderated prices after a spike, but the scale of this year's crop damage is larger. The government has not disclosed the quantity to be moved by train.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above.
