Rising onion prices: Centre asks states to go after hoarders

As onion prices continued their unabated run - prices have shot up 40 per cent in the past two weeks to Rs 18.50 a kg at Lasalgaon, the country's largest wholesale market for the edible bulb - the Centre on Monday issued a fresh directive to states asking them to check hoarding and black-marketing forthwith.

The prices have risen despite imposition of a minimum export price (MEP) of $300 (Rs 18,033) a tonne on June 17.

Prime Minister Narendra Modi himself reviewed the price situation in major commodities, including onions, with his key ministers and officials and urged state governments to remove the bottlenecks in supply chain.

"Onion prices have increased due to speculation amid anticipation of weak monsoon affecting Kharif (summer-sown) crops," PTI quoted R P Gupta, director of National Horticultural Research and Development Foundation.

Traders said the impact of rising onion prices at Lasalgaon in Nashik is being felt at Delhi's Azadpur market, where the prices are ruling at Rs 15-25 a kg depending on the quality.

Meanwhile, consumer affairs secretary Keshav Desiraju said: "There is no reason for a price rise because stocks are abundant. There should not be any problem in supply. The wholesale prices are low... onion price increase is happening at the retail level."

To check hoarding, Desiraju said three states - Chhattisgarh, West Bengal and Delhi - have sought the Centre's permission to impose a stock control order on onion traders, which is under consideration.

According to sources, over 35,000 raids have been conducted against hoarders, mostly in Gujarat and Tamil Nadu, and 6,223 people have been arrested since January. Onion production is estimated to have risen to 19.2 million tonnes during 2013-14 crop year (July-June), from 16.8 million tonnes in 2012-13.

Exports, meanwhile, fell to 1.4 million tonnes in the last financial year from 1.8 million tonnes in 2012-13.