Why in news
- Department of Consumer Affairs initiated calibrated market intervention releasing buffer stock onions at ₹35/kg via mobile outlets and rail logistics.
What is the Mechanism?
- Targeted market intervention scheme executed through Price Stabilisation Fund (PSF) mechanisms to curb retail food inflation.
- Buffer stocks managed by Central Warehousing Corporation (CWC), NAFED, and NCCF are deployed to demand centers.
Role of Kanda Express Logistics
- Utilises dedicated Indian Railways rakes ('Kanda Express') for bulk transport from key producing regions to major consumption urban centers.
- Scaled up movement from 12,000 MT (14 rakes) in 2024-25 to 88,000 MT (86 rakes to 16 cities) in 2025-26, lowering freight transport costs compared to road transit.
Key terms
Price Stabilisation Fund
A central fund set up to absorb price volatility of essential agricultural commodities through strategic buffer procurement and market release.
Prelims facts
- Price Stabilisation Fund operates under the Department of Consumer Affairs to manage perishables.
Mains discussion
- Role of logistics innovation and strategic buffers in mitigating seasonal agri-commodity inflation.
Source: PIB Press Release