Govt will ensure veggie prices are in check: CEA Arvind Subramanian

Amid sharp rise in prices of key veggies like onion and tomato, Chief Economic Advisor Arvind Subramanian today said the government will take action to contain their prices.

Prices of most vegetables are ruling high but onion and tomato rates have gone through the roof at most places. Retail onion prices have touched Rs 80/kg and tomato at Rs 60-70 per kg in the national capital.

"The government will take action to ensure that they are kept under check," Subramanian told reporters when asked about rising prices of perishable goods.

He said prices of perishables are up, while the rates of non-perishables like oilseeds and pulses are depressed.

To curb prices of onion, the government has already taken a series of measures to improve domestic supply, including through imports and by curbing exports.

Also, Nafed and SFAC have been asked to source locally 14,000 tonnes of onion from producing areas for distribution in consuming areas. State-owned MMTC has floated a tender for import of 2,000 tonnes of onion.

The stock holding limit on onion traders has been extended till December-end to check hoarding. Even exports are restricted by imposing minimum floor price of USD 850 per tonne.

Onion prices have shot up due to likely fall in the 2017- 18 kharif output. However, gradual increase in the arrival and the government measures is helping cool down prices in wholesale mandis, but yet to reflect in retail markets.