Rising prices of onions leads govt to impose stock limit on traders, ban export of onions

In view of the sustained high price of onions in the market, several steps have been taken to contain the prices namely, the imposition of stock limits on traders, ban on exports and has asked State Governments to take strict measures to prevent hoarding by traders including organizing raids.

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In a swift move, the Government today imposed stock limits on onion traders to facilitate the release of stocks in the market and prevention of hoarding by traders. In the past, the Centre had authorized the State Governments to impose stock limits. This time, Centre has decided to impose stock limits directly upon the States across India. The stock limit of 100 quintals on retail traders and 500 quintals on wholesale traders have been imposed across the country today.

Further, the Government has banned the export of onions with immediate effect till further orders for improving domestic availability. Recently, on 13 September 2019, the Minimum Export Price of US$ 850 F.O.B. per metric ton was imposed on export of onions. Though there was some reduction in export of onions thereafter, yet the exports were still continuing. The ban on the export of onions is expected to improve domestic availability and cool prices.

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Centre has asked the State Governments to enforce the stock limits strictly and carry out anti-hoarding operations against the unscrupulous traders by organizing raids, etc.

A Central buffer of about 56,700 MT was built by the Government through NAFED during Rabi 2019 season. This buffer stock is being utilized for supplies to Delhi at a rate of not more than 23.90 per kg. Haryana and Andhra Pradesh are also being supplied from the buffer. Other States have also been asked to utilize this buffer and indicate their demand for the same to the Department of Consumer Affairs and/or NAFED.

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The reported export below Minimum Export Price to Bangladesh & Sri Lanka will be immediately stopped and strict action will be initiated against those who are found to be violating this decision of the Central Government.

COURTESY:- NEWS BHARATI