Following a fresh surge in onion prices, the Centre has asked states to ensure that prices of essential commodities are kept under control and to especially take adequate measures to check traders/ dealers of onions to ensure adequate availability.

As a result, states can now impose stock limits on onions and undertake various measures, such as de-hoarding operations, action against speculators and profiteers.

“This has been necessitated due to the abnormal rise in prices of onions in recent weeks, particularly from July-end of this year, though the production and supply of onions in the market has been better than last year during the same period,” the Food Ministry said in a statement.

As per the all-India average retail price, onions are sold at Rs 15/kg to Rs 28.94/kg. In the metros, the rise has been steeper, Rs 31/kg in Chennai, Rs 38/kg in Delhi, Rs 40/kg in Kolkata and Rs 3/ kg in Mumbai.

“As part of its efforts to ensure that the prices of essential commodities are kept under control, the government has taken a decision to enable the states and Union Territories to impose control measures on traders and dealers of onion to ensure adequate availability of the essential commodity at reasonable prices," the Food Ministry said, adding that the government notified this decision vide order SO No. 2785 (E) on August 25, 2017.

The Food Ministry said after “examination of all the circumstances, the Government has inferred that there are some other reasons, other than shortage of onions, contributing to the abnormal price rise like hoarding, speculation, etc”, and expects that measures taken by the states will help bring prices down to a reasonable level.

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