Taking all policy measures to stabilise onion prices: Centre

ALL STATES HAVE BEEN ASKED TO SPECIFY THEIR ONION DEMAND WHICH COULD THEN BE MET FROM THE CENTRE’S STOCKS, AN OFFICIAL SAID

The Centre on Tuesday said current stocks of onions are sufficient to tide over a lean season and it was taking all policy measures needed to stabilise prices, adding that states could still order the bulb from federally held reserves of 35000 tonne.

Five states -- Haryana, Andhra Pradesh, Delhi, Tripura and Odisha -- have demanded onions from the Centre’s stocks. “The reported export below minimum export price to Bangladesh and Sri Lanka will be immediately stopped and strict action will be initiated against those who are found to be violating this decision of the government,” a government statement said.

The government usually tries to check a rise in prices by imposing a temporary minimum export price on onion, as it did on September 13. The minimum export price – set currently at US$ 850 a tonne -- refers to a floor price set for exports. No Indian exporter of onions can export below this price level.

This is a policy tool designed to curb exports by making Indian commodities expensive for foreign buyers in the hope that domestic supplies will improve. All states have been requested to specify their onion demand which could be met from the Centre’s stocks, an official said.

The NAFED, the Centre’s foodtrading arm, is responsible for managing the Centre’s onion buffer reserves. Another staterun trading agency, MMTC, has been asked to sign up for imports of an unspecified quantity, the Centre said. “There is sufficient stock of onions in Maharashtra to meet the current demand. However, supplies are seemingly being restrained to increase prices. Government is taking all measures to improve these supplies,” the statement said. Average retail prices of onions, a common base ingredient of most Indian dishes, have risen sharply, as a seasonal shortage worsened following flooding in several onion-growing states, prompting states and the central government to ramp up supply.

According to data reported by the National Horticulture Research and Development Foundation (NHRDF) on Monday, wholesale prices of the bulb were highest in Patna. The modal wholesale price, a type of average cost, of onion was ~ 50 per kg in Bihar’s capital.

Onion prices began firming up during the first week of September in cities such as Delhi, Gurugram and Kolkata.