Govt hopes onion prices will ease within a week

Retail prices of onion have soared to Rs 70-80 per kg in most parts of the country

Ruling out the possibility of declaring onion as an essential item, the government on Friday said its prices would ease in a week on improvement in the demand and supply situation.

Retail prices of have soared to Rs 70-80 a kg in most parts of the country, after dropping to Rs 50-55 a kg a week ago from the same high level, due to seasonal shortages. “There is a seasonal movement in onion prices. However, expectation are that prices will settle in a week or so on improved supplies,” Information and Broadcasting Minister Manish Tewari said here when asked if the Centre plans to place onion in the list of items covered under the Essential Commodities Act.

While the concern about price rise is appreciable but there is a need to maintain balance when addressing problems that are more structural and systemic in nature, he said after a cabinet meeting, adding onion is not an item qualified under the Essential Commodities Act, 1955.

On Thursday, both Agriculture Minister Sharad Pawar and Consumer Affairs Minister K V Thomas had said  prices were expected to cool down in the next two-three weeks on fresh arrival. Thomas had ruled out declaring onion as an essential item.

Onion, a politically sensitive commodity, in 2004 was deleted from the list of items covered under the Essential Commodities Act following satisfactory production and stable price trend. Earlier, there were 130 items under the Act.

The Centre has taken several steps to control onion prices. It has further restricted exports by raising the minimum export price to $900 a tonne from $650 a tonne. It has permitted import to boost local supplies. The Centre has also issued advisories to states to crack down on hoarders and speculators responsible for keeping prices artificially high.

Prices continue to remain high as stored onions are getting exhausted and fresh crop from Southern states is not coming in full swing due to heavy rain.