Govt imposes stock limit on onions up to December 31
The government has imposed a 25 tonne stock limit on onions in a bid to curb the price rise observed since the second week of September.
The all India average retail price variation of onions as on October 21 when compared with last year was 22.12 per cent (from Rs 45.33 to Rs 55.60 per/Kg) and when compared to last five years average is 114.96 per cent (from Rs 25.87 to 55.60 per/Kg).
The prices have increased by more than 100 per cent when compared with average of last five years and thus the price triggers under the Essential Commodities Act have been reached.
Thus the stock limit on the onions has been imposed with effect from Friday which is 25 tonne for wholesalers and two tonne for retailers up to the end of this year. The Essential Commodities (Amendment) Act, 2020 provides for the circumstances for imposition of Stock limit under extra ordinary price rise.
The recent reports of heavy rainfall in the onion growing districts of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh have created concerns about damage to Kharif crop. These developments on the weather front have contributed to the sharp increase in onion prices.
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 1 lakh metric tonne which was doubled since the quantity of last year.
To additionally ensure availability of onions in the wholesale markets, the government has taken steps to facilitate import of onion. The Indian High Commissions in the relevant countries already contacting the traders for ensuring greater imports of onions to the country.
