Onion prices in India have seen significant fluctuations recently, causing concern among consumers and farmers alike. Following a spike in prices during September, largely due to delayed harvests and damage to crops in southern states like Karnataka, the Central government has intervened to stabilise the market. Since mid-October, the transport of buffer onions by rail has begun to alleviate some of the pressure.
The first train, carrying 1,600 tonnes, arrived in New Delhi, followed by a second consignment of 840 tonnes from Nashik. These onions are primarily for retail sale at a controlled price of ₹35 per kg, providing some relief to consumers. The government’s efforts have already led to a slight decline in wholesale prices, with reports indicating a drop of about 5% since the end of October.
Bulk transport by rail has been adopted for the first time to ensure reliable and cost-effective delivery to various regions, complementing the ongoing truck shipments across the country. This initiative is part of a broader strategy, with agencies like NAFED and the National Cooperative Consumer Federation of India (NCCF) actively managing distribution to help keep prices stable. Despite these efforts, the situation remains a critical point for the rural economy, as onion prices significantly impact farmers' incomes and consumer spending.
The government has also worked with retail chains to facilitate the distribution of onions at a reasonable price, ensuring they reach household.
