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regular-article-logo Wednesday, 08 May 2024

Onion price hike: Centre imposes stock holding limit

Retailers can stock onions only up to 2 tonnes, whereas wholesale traders are allowed to keep up to 25 tonnes

R. Suryamurthy New Delhi Published 24.10.20, 02:11 AM
People buy onions at a subsidized rate of Rs. 40 per Kg at a vegetable market, in Vijayawada, Friday, Oct. 23, 2020.

People buy onions at a subsidized rate of Rs. 40 per Kg at a vegetable market, in Vijayawada, Friday, Oct. 23, 2020. PTI

In a move to contain the spiralling prices of onions, the Centre on Friday imposed stock holding limit on retail and wholesale traders till December 31 to boost availability of the bulb crop and provide relief to consumers during the festive season and also to prevent adverse political impact in poll-bound Bihar.

Retailers can stock onions only up to 2 tonnes, whereas wholesale traders are allowed to keep up to 25 tonnes, consumer affairs secretary Leena Nandan told reporters.

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The prices of the kitchen staple have surged across the country for the second consecutive year.

She said the government has to invoke the Essential Commodities (Amendment) law — which was passed last month in Parliament — that allows it to regulate perishable commodities in an extraordinary price rise situation.

Consumer affairs minister Piyush Goyal tweeted “to control rising onion prices and curb hoarding, the government has taken the third step. Imposed stock limit of 2 tonne on retailers and 25 tonne on wholesalers”.

Onion prices have shot up sharply to about Rs 100 per kg in some parts of the country, including Mumbai and Pune in the last few weeks in the wake of damage to standing Kharif crops in producing areas due to heavy rainfall.

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