New Delhi: The central government on Friday (October 23) decided to impose a share limit on retail and wholesale onion traders till December 31. The move is aimed at improving the domestic availability of onions and providing relief to consumers.
Retailers can store up to 2 tonnes of onions, while wholesalers are allowed to keep up to 25 tonnes, Consumer Affairs Secretary Leena Nandan told a news conference. In the last few weeks, the price of onion has gone up by more than Rs 75 per kg following the damage to the standing Caribbean crop due to heavy rains.
According to the government, the massive export of 15 lakh tonnes of onions is one reason for the short supply of goods. Supply in the domestic market has been declining since September, leading to artificial price hikes.
Onions are also disposed of through open market sales. This will be further accelerated to reduce inflation.
In addition to facilitating imports by private traders, it has also been decided that MMDC will start importing red onions to fill the demand-supply gap. Necessary action under the Prevention of Black Marketing and Maintenance of Distribution of Essential Commodities Act, 1980 will prevent hoarding and black selling of onions by unscrupulous elements.
The Essential Commodities (Amendment) Act, 2020 provides the conditions for imposing a stock limit under extraordinary price increases. The All India Average Retail Price Variation as on October 21, 2020 is 22.12% (up from Rs. 45.33 to Rs. 55.60 per kg) compared to the previous 5 years and averaged 114.96% (from Rs. 25.87), according to an official report. 55.60 per kg).
Therefore, prices have increased by more than 100% compared to the average of the last 5 years and thus price stimuli have been achieved under the Election Commission Act. Therefore, the stock limit of onion has been implemented from today till 25 December 20, 20 December 2020 for wholesalers and 25MT and retailers.
In order to mitigate the rise in prices, the government took precautionary measures by announcing a ban on onion exports on September 14, thus ensuring that kharif onions were available to domestic consumers at reasonable prices before arrival.
“Thus the retail price hike was somewhat moderate, but recent reports that onion-growing Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh will receive heavy rains have raised concerns about damage to the Caribbean crop,” it said.
These improvements in weather forecasting contributed to the sharp rise in onion prices. To know the current situation, the government has accelerated the removal of onion-bundled onion buffer shares from I LMT’s Rabi Onion-2020, which has doubled from last year’s level.
Release of onions from buffer stocks rapidly but in a measured manner from the second half of September 2020 to major mandis, retailers Safal, Kendriyabandar, NCCF, Tanhoda & Danfet (Government of Tamil Nadu) country, and major cities and state governments NAFED outlets. Currently supplied from Government of Assam, and Government of Kerala (Horticultural Product Dev. Corp Ltd.) Retail Disposal Mechanism. Andhra Pradesh, Telangana, and Lakshadweep have also sent in demand for onions, which are being shipped.