Stock Limit on the Onions of 25MT for Whole Sellers and 2MT for
Retailers for a period from 23 Oct to 31 Dec 2020
·
Sale from the Buffer Stock Stepped Up
The price rise observed in Onions since the second week
of September required pro-active steps to be taken. The rise in prices of onion
was being monitored very closely on a day-to-day basis through a Dashboard by
the Department of Consumer Affairs and called for immediate steps to cool off
the spiraling trend.
The Essential Commodities (Amendment) Act, 2020 provides
for the circumstances for imposition of Stock limit under extra ordinary price
rise. The All India average retail price variation of onions as on 21.10.2020
when compared to last year is 22.12 % (from Rs 45.33
to Rs 55.60 per/Kg) and when compared to last 5 years
average is 114.96% (from Rs 25.87 to 55.60 per/ Kg).
Therefore, the prices have increased by more than 100% when compared with
average of last 5 years and thus the price triggers under EC Act have been
reached. Thus the stock limit on the onions has been imposed with effect from
today which is 25MT for Whole Sellers and 2MT for Retailers for a period up to
31-12-2020.
In order to moderate the price rise, the government took
a pre-emptive step by announcing a ban on onion export on 14.09.2020 so as to
ensure availability to domestic consumers at reasonable rates, before the
expected arrival of Kharif onion. Thus the retail
price rise was moderated to some extent, but recent reports of heavy rainfall
in the onion growing districts of Maharashtra, Karnataka, Andhra Pradesh and
Madhya Pradesh have created concerns about damage to Kharif
crop.
These developments on the weather front have contributed
to the sharp increase in onion prices. To tide over the present situation, the
government has stepped up disposal of Onions through the built up onion buffer
stock from the Rabi onion -2020 of I LMT which was doubled since the quantity
of last year. The release of onion from the buffer stock is being carried out
swiftly but in a calibrated manner from the second half of September, 2020 to
major Mandis as well as to retail suppliers such as Safal, Kendrya Bhandar, NCCF, TANHODA & TANFED (Govt. of Tamil Nadu),
and NAFED outlets in major cities and also through State Governments. Presently
Govt. of Assam, and Govt. of Kerala (Horticulture Product Dev. Corp. Ltd) are
being supplied from the retail disposal mechanism. Andhra Pradesh, Telangana
and Lakshadweep have also placed their requisition for onions, which are being
dispatched.
Further, Onions are also being disposed off through Open Market Sales. This will be stepped up
further to bring down the price rise.
An estimated Kharif Crop of 37
LMT is also likely to start arriving in the Mandis
that will add to the availability of Onions.
To additionally ensure availability of onions in the Mandis, the government has taken steps to facilitate import
of onion and on 21.10.2020, the government has relaxed the conditions for
fumigation and additional declaration on Phytosanitary
Certificate under the Plant Quarantine Order, 2003 for import upto December 15, 2020.
The Indian High Commissions in the relevant countries are
already contacting the traders for ensuring greater imports of onions to the
country. Such consignments of imported onions, which arrive on Indian ports,
through land or sea, without fumigation and endorsement to that effect on the
PSC, would be fumigated in India by the importer through an accredited
treatment provider. Such consignments after fumigation would be released with no
additional inspection fee and an undertaking will be obtained from the
importers that the onion will be used only for consumption and not for
propagation. Such consignments of onions for consumption will not be subjected
to four times additional inspection fee on account of non-compliance of
conditions of import under the PQ order, 2003.
Apart from facilitating the import by the private
traders, it has also been decided that MMTC would start importing of red onions
to meet the demand supply gap.
Requisite action under the Prevention of Black-marketing
and Maintenance of Supplies of Essential Commodities Act, 1980 would be taken
to prevent any hoarding, black marketing of Onions by unscrupulous elements.