Centre for action against hoardings to control Onion price rise

The government believes that hoarding, profiteering and speculative trading are the reasons behind the surge in prices of Onion in many parts of the country.

Published: 29th August 2017 08:28 PM  |   Last Updated: 29th August 2017 08:28 PM   |  A+A-

File Photo for Representational Purposes. | Express Photo Service

By Express News Service

The government believes that hoarding, profiteering and speculative trading are the reasons behind the surge in prices of Onion in many parts of the country. Onion prices have seen almost 100 per cent rise in past couple of weeks. Alarmed over the situation, Centre has directed the States to take proper measures including imposing stock limits to control the price surge.

Prices of Onion which used to sell at Rs 20 Rs Kg or even at lesser rates have surged to Rs Rs 40 KG and more in Delhi and other cities across the country.

 Wholesale traders in Delhi claimed that the reason is due to a shortfall in supplies from Karnataka and Andhra Pradesh. “These regions have seen a deficit in rainfall which affected production in these States. On the contrary, many states like Rajasthan and Gujarat witness excess rain leading to damage of crops,” said Surender Goyal, a trader in Azadpur wholesale market in the national capital.

Traders claimed currently supply is mainly from Maharashtra.

“There might be possibility of hoarding or profiteering by the traders in Maharashtra leading to the surge in price. Supply in Delhi and other parts have come down and it will remain low in coming weeks due to heavy rain in Maharashtra these days,” added Goyal.

Officials of the Consumer Affairs ministry said that hoardings can’t be ruled out at this stage to make a profit out of the current situation.

“Seeing this, states have been told to keep watch on such elements and take proper action accordingly. They can also impose stock limit to avoid hoardings,” said an official.

Meanwhile, the traders claimed that the situation will remain similar for some days as the new crop will start arriving from September onwards.

“Supply will start improving only after mid-September and till then price will remain in the range of Rs 30-40 a kg,” said another trader.

Onion price rise

Prices of Onion which used to sell at Rs 20 Rs Kg or even at lesser rates have surged to Rs Rs 40 KG and more in Delhi and other cities across the country.

Supply has come down due to bad weather in many parts of the country.

States have been told to keep watch on hoardings and take proper action accordingly. They can also impose stock limit to avoid hoardings.

The situation will remain similar for some days as the new crop will start arriving from September onwards.

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