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Onion price rise: Centre asks states to cap surge, impose stock limits

As per all India average retail price, onion prices have increased from Rs 15/kg to Rs 28.94/kg

IANS  |  New Delhi 

onion, onions
Labours sort onions

In a bid to keep prices of essential commodities under control, the Centre has decided to enable the states and Union territories to take action against dealers in onions who engage in speculative trading, hoarding and profiteering.

According to a statement released on Tuesday, the central government notified on August 25 its decision to impose stock limits on onions and undertake various other measures in this regard.

This was necessitated by the abnormal rise in prices over the past few weeks, though the production and supply of onions in the was better than in 2016 during the same period, the statement said.

On examination of all circumstances, the government inferred that there were reasons other than shortage of onions, contributing to its abnormal price rise -- such as hoarding, speculation, etc.

"Therefore the states/UTs were required to be enabled to take action against those traders who are engaged in speculative trading, hoarding and profiteering in onions," the statement said.

The measures were expected to bring the prices down to a reasonable level and provide immediate relief to consumers, the statement added.

As per all India average retail price, prices have increased from Rs 15/kg to Rs 28.94/kg.

In the metros, the rise has been steeper, touching Rs 31/kg in Chennai, Rs 38/kg in Delhi, Rs 40/kg in Kolkata and Rs 33/kg in Mumbai.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, August 29 2017. 14:44 IST