Odisha retailers told to trim margin as potato, onion prices soar

Onion and potato prices were up as much as 87% and 59% year-on-year

The state government today stepped in to check sudden spurt in potato and onion prices by asking traders to trim profit margins.

“We have asked onion and potato traders not to keep profit margin unreasonably high.They have been told to keep the margin between wholesale and retail prices of onion and potato at Rs 3.50 per kg and Rs 2.50 per kg respectively,” said Madhusudan Padhi, Food Supply and Consumer Welfare secretary with the state government.

The price of onion has gone up by 11.22 per cent within one month and 87.15 percent over the  same month last year. The vegetable is currently traded at around Rs 30 per kg in the retail market.

Similarly, potato prices are up by 18.60 percent from last month and 59 per cent over the previous year’s rate. The retail price of the tuber variety currently rules at around Rs 20 per kg.

Odisha buys potato mostly from West Bengal, the top producer and onion from Maharashtra. The rates of both the vegetable have gone up across the country due to supply problems.

However, the government said, there was higher price differences between wholesale and retail rates of the vegetables. In key wholesale market, potato is traded at Rs 1,500 per 100 kg while onion is priced at Rs 2,400 per 100 kg. The huge gap between wholesale and retail prices of onion in the market has taken the government by surprise despite an advisory sent to officials to crack down on hoarding and speculation. “We will issue notification soon regarding retail prices of onion and potato for the benefit of consumers,” Padhi added, saying there is enough supply of the commodity.

Meanwhile, the state government has agreed to exempt ‘mandi tax’ to contain the price surge.

State cooperation secretary, Bishnupada Sethi today ordered issue of notification regarding withdrawal of fees being collected by Regulated Marketing Committee (RMC) from vegetable and fruit traders. RMC was collecting one per cent fee from vegetables and fruits for allowing the traders to conduct business in its premises. However, the government said except for onion and potato, it has no control over price rise of other green vegetables. The rates of many green vegetables at key markets have gone up by 50 per cent within a week.