The Centre Imposing Stock Limits on Onions
The Centre is deliberating stock limits on onion traders as the retail prices of the key kitchen staple have shot up to Rs 70-80 per kilogram. According to sources, it is effective to the national capital and other parts of the country owing to supply disruption in the wake of excess monsoon rains in the major growing states.
Last week, retail onion proves rose to Rs 57/kg in Delhi. Plus, Rs 56/kg in Mumbai, Rs 48/kg in Kolkata and Rs 34/kg in Chennai. This is as per the data maintained by the consumer affairs ministry.
Moreover, during the same period, the prices quoted at Rs 60/kg in Gurugram and Jammu.
However, in the previous week onion prices were Rs 50-60/kg. While the trade data showed retail onion prices skyrocketing to Rs 70-80/kg towards the end of the week.
Despite several measures taken by the central government to boost supply, onion prices are on the rise.
A source told PTI that the government has taken several measures in the last few weeks to improve the domestic supply and check the further increases in prices of onion. However, in the last 2-3 days, prices have suddenly shot up because of supply disruption due to excessive rains in the growing states.
Furthermore, the source also said that if the situation in the Centre does not normalize in the next 2-3 days and prices rise. Then the government may consider seriously imposing stock holding limits on onion traders.
Excess monsoon rainfalls in the last two days hit the main onion producing regions. Especially, some of the states in India, Maharashtra, Karnataka, Andhra Pradesh, Gujarat, eastern Rajasthan, and western Madhya Pradesh, according to the Met Department.
Traders said that stored onions sell in most parts of the country. As fresh Kharif crop will hit the market from November onwards.
The Centre’s Stored Onions
The Centre has enough supply of stored onion from the previous year’s crop, but its transportation has been affected because of heavy rains.
Asia’s largest onion market from Lasalgaon in Maharashtra said that much storage of the onion is in Maharashtra. Also, rain disrupted the transport of the kitchen staple to other parts of the country.
Onion prices rose to Rs 45/kg last week when compared with less than Rs 10/kg in the year-ago period.
To arrest the prices of onion in Delhi, India and other parts of the country, the Centre has taken several measures.
Moreover, through agencies like Nafed and NCCF which are selling at around Rs 22/kg and state-run Mother Dairy at Rs 23.90/kg in the national capital, they offload onion from its buffer stock.
The state governments have been asked to boost supply in their states lofting central buffer stock. Delhi, Tripura, and Andhra Pradesh are the states who have shown interest so far.
The Centre has offloaded 16,000 tons of onion from its 56,000 tons of buffer stock. While 200 tons a day is offload in Delhi.
Besides, by increasing the minimum export price and withdrawing incentives, the Centre has discouraged the export of onion. It is also cracking down on black marketeers.
