The central government has reduced the stockholding limits for onion retailers from 5 tonnes to 2 tonnes to check the rising onion prices, says a report. All states governments have been instructed in this direction to take necessary actions to prevent hoarding of onions.
The stockholding limit has been reduced consecutively two times in the month. Earlier this month, the government had slashed the retailers’ stockholding limit from 10 tonnes to 5 tonnes, while the limitation for the wholesalers was brought down to 25 tonnes from 50 tonnes.
Taking other preventive measures, the centre has also an import of 36,090 tonnes of onions. A total of 21,090 tonnes which includes 6,090 tonnes from Egypt and 15,000 tonnes from Turkey are already contracted out of total approved import.
A ban was enacted on the export of onions earlier in September by the government to retain domestic supply. However, the ban on overseas sales of onions by India is somehow considered responsible for rising onion price.
As the production of Kharif crop has fallen down due to unusual rainfall this year, the prices of onions are soaring high since the past few weeks.