Speed Post News Network
New Delhi : In view of sustained high price of onions in the market, the Central Government on September 29, 2019, took several steps to contain the prices including imposition of stock limits on traders and ban on exports and has asked State Governments to take strict measures to prevent hoarding by traders including organising raids.
In a swift move, the Central Government on September 29 imposed stock limits on onion traders to facilitate release of stocks in the market and prevention of hoarding by traders. In the past, the Centre had authorised the State Governments to impose stock limits. This time, it has decided to impose stock limits directly on the States across India. The stock limit of 100 quintal on retail traders and 500 quintals on wholesale traders has been imposed across the country.
Further, the Government has banned export of onions with immediate effect till further orders for improving domestic availability. On September 13, 2019, the Minimum Export Price of US$ 850 FOB ( Freight on Board) 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 export of onions is expected to improve domestic availability and cool prices.
The Centre has asked the State Governments to enforce the stock limits strictly and carry out anti-hoarding operations against the unscrupulous traders by organising raids, etc, according to a PIB release.
A Central buffer of about 56,700 MT was built by the Government through NAFED during Rabi 2019 season. This buffer stock is being utilised for supplies to Delhi at a rate of not more than Rs 23.90 per kg. Haryana and Andhra Pradesh are also being supplied from the buffer. Other States have also been asked to utilise this buffer and indicate their demand for the same to Department of Consumer Affairs and/or NAFED.
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.
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