Government mulls action as onion prices go through the roof

New Delhi: Amidst its constant endeavour to reign in the soaring prices of onion the government is contemplating several measures – the latest being to buy onion through National Agricultural Cooperative Marketing Federation of India (NAFED) to increase supply.

The government is planning to buy 50 thousand tonnes onion through Nafed that will increase supply of the kitchen staple has seen manifold jump in the last one month.

Onion prices have jumped nearly 75 percent in the last one month after supply crunch from states like Maharashtra, Karnataka and Madhya Pradesh. Severe floods have also affected the crop in these states.

Onions for retailing by Safal is being made available at present from the government stock built under Price Stabilisation Fund (PSF).  

Recently, Safal was also asked to double the quantity of its retailing operations for onions.NAFED and NCCF were also directed to retail onions at prices similar to that of Safal through their outlets and mobile vans. Further, onions from the government buffer would be offered at cost price to large retailers for supplies to public at reasonable prices.

Government had earlier said that will also consider strict action against hoarding and profiteering activities and evaluate the need for imposing minimum export price (MEP) on onion if the situation so demands.