Onion price hike: Govt to consider stock limit on traders

The Centre will consider imposing the stock limit on onion traders if retail prices continue to remain high even after exhausting the buffer stock, Food and Consumer Affairs Ram Vilas Paswan said on Tuesday.

The government will "wait and watch" the price situation for some time for imposing the stock limit as it is equally concerned about the interest of farmers, he said.

Agriculture Minister Narendra Singh Tomar also assured that onion prices will calm down in the next few days as supply is being improved in the domestic market by agencies like Nafed.

To give relief to consumers, central agencies Nafed and the NCCF have been selling onion from the buffer stock at Rs 22-23/kg, while Mother Dairy's Safal stores are selling at Rs 23.90 per kg in the National Capital.

Trade data showed that retail prices have shot up to Rs 70-80 per kg in the Capital owing to tight supplies. A similar price trend prevails in other parts of the country.

"We have taken the best possible measures so far to boost supply and contain onion prices. We have to look at other options like stock limit if the current high price situation continues," Paswan told reporters.

He said the government "will think about imposing a stock limit on traders once the buffer stock gets over. We will also take stringent action against hoarders and black marketeers".

The government is doing a "balancing job" keeping in mind the interest of both consumers and farmers, he added.

The centre has built a buffer stock of 50,000 tonnes of which 15,000 tonnes have been offloaded in the domestic market.

Paswan also shared that he was in regular touch with the Maharasthra chief minister on onion issue.

Echoing the views at another event, the agriculture minister said, "Onion situation will improve in the next few days. Cooperative Nafed is releasing stock from the central buffer at a lower price. We have enough stock of onions."