New Delhi, Oct 23 (UNI) The Centre on Friday imposed a stock limit on onions to control its price rise which has already touched Rs 100 per kg in several states. As per the order, the stock limit on onions have been capped at 25 MT for wholesalers and 2 MT for retailers till December 31.
The prices have surged as onion crops were destroyed due to heavy rainfall in Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh.
‘The price rise observed in onions since the second week of September required proactive steps to be taken. The rise in prices of onion was being monitored very closely on a day-to-day basis through a Dashboard by the Department of Consumer Affairs and called for immediate steps to cool off the spiralling trend,’ the Ministry of Consumer Affairs, Food & Public Distribution said in a statement here.
‘The Essential Commodities (Amendment) Act, 2020 provides for the circumstances for imposition of Stock limit under extra ordinary price rise. The All India average retail price variation of onions as on October 21 when compared to last year is 22.12 per cent (from Rs 45.33 to Rs 55.60 per/Kg) and when compared to last 5 years average is 114.96 per cent (from Rs 25.87 to 55.60 per/ Kg).”
‘Therefore, the prices have increased by more than 100 per cent when compared with the average of the last 5 years and thus the price triggers under EC Act have been reached. Thus the stock limit on the onions has been imposed with effect from today which is 25MT for Wholesalers and 2MT for Retailers for a period up to 31-12-2020,’ the statement said.
In order to moderate the price rise, the government took a pre-emptive step by announcing a ban on onion export on September 14 so as to ensure availability to domestic consumers at reasonable rates, before the expected arrival of Kharif onion, the ministry said.
The retail price rise was moderated to some extent, but recent reports of heavy rainfall in the onion growing districts of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh have created concerns about damage to the Kharif crop.
These developments on the weather front have contributed to the sharp increase in onion prices, it said.
To tide over the present situation, the government has stepped up disposal of onions through the built up onion buffer stock from the Rabi onion -2020 of I LMT which was doubled since the quantity of last year.
