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Government reviews situation as onion prices go through roof

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

Government reviews situation as onion prices go through roof

New Delhi: Department of Consumer Affairs (DoCA) reviewed the price situation of onion in Delhi as the prices of the kitchen staple has seen manifold jump in the last one month.

The department also held a High Level meeting chaired by the Secretary, DoCA Avinash K. Srivastava with all the concerned stakeholders including MD NAFED, MD NCCF, Safal and others.

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).  

It was decided that retail priceof onion at Safal would not be allowed to exceed Rs 23.90 per kg (for Grade A variety) i.e., theprice prevailing at their outlets as on 21st August, 2019. For this, Safal will continue to receive onions from the government buffer at the same rate at which it was offered on August 21, 2019.

Safal was also asked to double the quantity of its retailing operations for onions.NAFED and NCCF were also directed toretail 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.

The price situation would be monitored regularly by the department for appropriate intervention, the DoCA said.

Government 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.