Delayed sowing, decrease in crop area behind onion price spike, says Centre

Minister of State (MoS) for Consumer Affairs, Food and Public Distribution Raosaheb Dadarao Danve on Tuesday explained the reasons behind the rise in onion price.

Replying to questions over the spike in the price of onions, Danve said: "During 2019-20, there was a 3-4 weeks delay in sowing as well as the decline in sown area of the Kharif onion because of the late arrival of monsoon."

"Further, untimely prolonged rains in the major growing states of Karnataka, Maharashtra and Madhya Pradesh during the harvesting period, i.e., September/October, caused damage to the standing crops in these regions," he said.

"All this adversely impacted the production and quality of the Kharif crop. The rains during September-October also affected the transportation of the crop from these regions to consuming areas. This led to limited availability of Kharif onion in the market and put pressure on its prices," he said.

"The Central government on December 3, 2019, reduced the stock limits on traders across the country to 50 quintal on retail traders and 250 quintals on wholesale traders under the Essential Commodities Act, 1955," said Danve.

"Further, the Government of India has urged State governments to hold regular meetings with the traders of onions at the State and district level to prevent hoarding, speculative trading and profiteering, unfair and illegal trade practices," he said.