To discourage speculative and unscrupulous trade activities, Department of Consumer Affairs has enabled the states to impose stock limit on onion.
In addition the Department of Consumer Affairs, in coordination with Department of Commerce, has recently held meeting with traders and importers and reviewed the current onion price and availability situation.
According to an official release, Department of Consumer Affairs is regularly monitoring the prices and availability of essential food items including onion. It has noted that the third advance estimate of production of onion for 20016-17 is higher at 217.2 lakh metric tonne (LMT) as compared to the earlier production estimated of 215.6 LMT.
Therefore, the release said, there appears to be no underline cause for prices for onion to increase. However, prices of onion have recorded increase over the last month.
It transpired that import of around 2,400 MT of onion has arrived while another 9,000 MT is expected shortly. Recent production does indicate that as per the fundamentals, there is no rational for prices of onion to rise any further.
“Department of Consumer Affairs will regularly review the price situation with stakeholders and facilitate imports by private traders to help moderate speculation in the market if prices go up unreasonably,” it said.