Government cuts onion stockholding by 50% to check hoarding

To check onion hoarding, the central government here on Tuesday decided to reduce by 50 per cent the stock limit for the wholesale and retail traders to 25 tonnes and 5 tonnes, respectively.

According to the Union Ministry of Consumer Affairs, Food and Public Distribution order, onion wholesalers would no longer be able to stock more than 25 tonnes of onions and retail traders 5 tonnes.

The order has come into force with immediate effect. But the new rule will not apply to importers, it was decided at a meeting, chaired by Secretary in the Union Ministry of Consumer Affairs Avinash Kumar Srivastava.

To check the skyrocketing prices of onion, on September 30 the central government had fixed onion stock limit for the wholesale and retail traders at 50 tonnes and 10 tonnes, respectively.

While the wholesale price has crossed Rs 80 per kg in Delhi's Azadpur mandi, at retail outlets it was being sold at Rs 80-130 a kg in Delhi-NCR markets.

The state Chief Secretaries have been asked to monitor the demand-supply situation of onions at the district level and to take strict action against the onion hoarders.

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Onion output likely to fall 26% in kharif, late-kharif seasons of 2019-20: Food Minister

Food Minister Ram Vilas Paswan has said production of onion in kharif and late-kharif seasons of 2019-20 is likely to fall 26% to 5.2 million tonne as compared to the previous year's production of 69.91 lakh tonne in the same seasons, putting pressure on supply and prices. 

 

The all-India average retail price of onion stood at Rs 60.38 per kg on November 15, compared with Rs 22.84 per kg on the same date last year.

He said onion is a seasonal crop with harvesting period of rabi (March to June), kharif (October to December) and late-kharif (January-March). During July to October, the supply in the market comes from stored onions from rabi season.

During 2019-20, there was a 3-4 weeks delay in sowing as well as decline in sown area of the kharif onion because of late arrival of monsoon. Further, untimely prolonged rains in the major growing states of Karnataka, Maharashtra and Madhya Pradesh during the harvesting period caused damage to the standing crops in these regions. 

As a result, he said the production of kharif crop was affected.

The minister further said the rains during September-October also hit transportation of crop from these producing regions to consuming centres. 

This led to limited availability of kharif onions in the market and has put pressure on its prices. Paswan said the government has banned onion exports and imposed stock limits to boost domestic supply and check prices.

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