In an effort to check hoarding and boost domestic supply of the kitchen staple, the Centre has further reduced the stock holding limit for onion to 2 tonnes from the existing level of 5 tonnes for retail traders with immediate effect. The Consumer Affairs Ministry directed the state governments to undertake anti-hoarding operation with immediate effect on retail traders.
Earlier, the ministry had reduced the stock holding limit for retailers to 5 tonnes from 10 tonnes, while that on wholesalers to 25 tonnes from 50 tonnes as onion prices were ruling high up to Rs 150 per kg. Retail onion prices have risen in the past two months due to short supply owing to fall in production of kharif (summer) crop after heavy rains.
As per the ministry's data, maximum retail prices are ruling at Rs 165 per kg on December 09, while modal price was at Rs 100 per kg. In most cities, onions are quoted over Rs 100 per kg in retail markets. The government has taken several measures to improve the supply of onion across the country and check price rise. Besides banning export, the government is boosting the supply through various modes including through sale of buffer stock onions at a subsidised rates and imports.
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