Prices of staple onions and tomatoes likely to fall ahead of festive season

| | New Delhi
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Prices of staple onions and tomatoes likely to fall ahead of festive season

Friday, 18 October 2024 | Vibhu Joshi | New Delhi

Ahead of the festive season, the pockets of the Delhi households  will take a sigh of relief as the prices of staple onions and tomatoes is likely to fall with certain measures in place by the government to arrest the price.

Prices of onion which are currently ranging between rupees 80 to 120 per kg and tomato prices at rupees 100 to 130 per kg depending upon locality, are going to come down, said a vegetable trader.

Consumer Affairs Secretary Nidhi Khare announced `Kanda Express’ which will be transporting 1,600 tonnes of buffer stock of onion via railways from Maharashtra to Delhi.

Kanda express will depart from Maharashtra's Lasalgaon Railway Station and it is expected to reach Delhi's Kishanganj Railway Station on October 20.

“Additionally, onions will be transported through rail rakes to the northeastern regions as well as key cities in Uttar Pradesh, including Lucknow and Varanasi. This move is expected to help stabilize prices amid increased demand during the festive season," Khare said.

The government is currently selling the buffer stock of onions at the subsidised rate of Rs 35 per kg. They will continue selling tomatoes at a subsidised rate of Rs 65 per kg in Delhi-NCR.

Since October 7, National Cooperative Consumers' Federation of India (NCCF) has sold around 10,000 kg of tomatoes through mobile vans, NAFED outlets, e-commerce platforms like Otipy and Zepto , Mother Dairy's Safal outlets, and Kendriya Bhandar in Delhi and Mumbai at a subsidised rate. To further help the common folks, the number of mobile vans will be increased from 600 to 1,000 ahead of Diwali.

The decision of transporting onion via rail is more cost effective as one rake (equivalent to 56 trucks) from Nasik to Delhi costs Rs 70.20 lakh compared to Rs 84 lakh by road. There is an expected weekly supply of tomato from Maharashtra to stabilise the prices in the capital.

The government's market intervention this time has extended beyond a week, reflecting the severity of the price surge and the administration's commitment to providing relief to consumers during the festive season.

As of October 16 tomato cost Rs 80 and onion cost Rs 70 per KG in East Delhi, in North Delhi and West Delhi it cost Rs 90 for a KG of onion and for a kilo of tomato it cost Rs 100 , in South Delhi onion is being sold at Rs 70 per KG and tomato at 110 rupees per KG.

Khare said relief may be in sight for Delhi-NCR residents reeling under soaring tomato prices, which have crossed Rs 100 per kg mark, with increased supplies expected from Maharashtra in the coming days.

The price surge comes as supplies from key southern states Karnataka and Andhra Pradesh have been disrupted due to retreating monsoon rains causing crop damage and pest infestation.

This supply crunch, coupled with festive season demand, has pushed prices northward.

 "While weekly arrivals have been impacted, we expect supplies from Maharashtra to improve shortly, which should help stabilise prices in the national capital," Khare said, adding that the government is maintaining strict vigilance on price movements. Since October 7, the government has sold around 10,000 kg of tomatoes through mobile vans and outlets in Delhi and Mumbai at a subsidised rate.

 "The retail intervention will continue until we see a meaningful impact on prices," Khare said, noting that similar measures had helped control prices last year.

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