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Govt imposes stock limit on retail, wholesale onion traders to check prices

26 Oct 2020 Evaluate

In order to contain onion prices, the Centre has imposed stock holding limit on retail and wholesale traders till December 31 to improve the domestic availability of the commodity and provide relief to consumers.

Consumer Affairs Secretary Leena Nandan said retailers can stock onion only up to 2 tonne, whereas wholesale traders are allowed to keep up to 25 tonne. She said the government had to invoke the Essential Commodities (Amendment) law -- which was passed last month in Parliament -- that allows it to regulate perishable commodities in the extraordinary price rise situation.

Onion prices have shot up sharply to over Rs 75 per kg in the last few weeks in the wake of damage to standing Kharif crop in producing areas due to heavy rainfall.

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