Centre peels layers off onion hoarding

May import 10,000 tonnes of edible bulb in the next few days to improve supplies

The Centre has directed all state governments to take immediate action against hoarding and black-marketing of onions in view of the sudden increase in prices in some centres. It is also in process of importing 10,000 tonnes of the same to curb price rise.

"We have taken several measures to check prices of onion in the last few weeks. We have tendered for import of 10,000 tonnes of onions, which will help increase supplies in the market," Food Minister Ram Vilas Paswan told reporters here. Nafed has floated a tender for onion imports and the bids will be finalised this week, he said.

Stating that hoarders get active during this lean period of July-September, Paswan said, "We have imposed stockholding limits on onion. So far, three states have imposed stock limits. We have asked states to strengthen enforcement efforts and crack down on hoarders and profiteers."

Last year too, timely action by state governments against hoarders had helped contain prices.

Officials said though the Centre has given power to the states to impose stock limits on onions as per their convenience, just three states have imposed stockholding limits. Besides, the government is also expected to issue a tender to import 10,000 tonnes of onions this week to tide over the shortfall. Officials said it has also directed the states to utilise the services of its agencies to sell onions in the open market.

Nafed and other agencies are expected to intervene in the markets to sell onions at reasonable rates.

Retail price of onions in most major markets of country have increased by an average of Rs 10 a kilo in the last one month mainly due to unprecedented rains in eastern India and Rajasthan, which damaged some of the standing crop and also made transportation of the commodity difficult.

Much of the rabi (winter) onion crop is stored to meet the demand in the lean period. But this year, most of the onion kept in storage is of poor quality as the rabi crop got damaged due to unseasonal rains in early March.

About 3 million tonnes of stored onions is left in the domestic market to cater to the demand till September. Total onion production is estimated to be 18.9 million tonnes in 2014-15 crop year (July-June), slightly lower than 19.4 million tonnes in the year-ago period.