Onion Update: Traders Wants 15 Days to Ensure Stock Limit, Government Wants the Same in 3 Days

Central government has issued orders to the state governments on Thursday soliciting them to permit a window of three days to onion retailers and wholesalers from the date of procurement before the imposition of the stock limit. The ministry of consumer affairs has expressed that in order to assist onion merchants and wholesalers, a time-frame of three days from date of procurement might be given to them for packing and grading of the produce. 

"So as to keep a limit on the rising costs of onions, the centre has forced a stock constraint of 25 tons for wholesalers and 2 tons for retailers. Any infringement will draw in severe penalty and punishment. The time span of three days will give them an ideal opportunity for arranging the produce before stock cutoff sets in," said a senior official from the consumer affairs ministry. 

In any case, stock cutoff won't be applicable for imported supply of onions. Onion importers are permitted to keep stock in abundance.  

"We are requesting for a minimum time-frame of 15 days to arrange our old stock. Numerous wholesalers and retailers have stock in abundance and does not meet the recommended limit as per the administration. It is difficult to cut down these stocks right away and for doing so we need time. However, the government is giving only three days time for new stock without referencing any help identified with the stock we are currently holding," commented Rajinder Sharma, president, Azadpur Mandi Association. 

The govt. in the previous one month has taken many steps to cut down onion prices, which have dramatically increased in the last 20 days. In numerous places, prices have soared up as high as Rs 100 per kilo. 

"We have restricted the export of onions and onion seeds. Besides that, we have delivered buffer stock onions into the market with a selling price of Rs 26 per kilo. We plan to deliver an aggregate of around 70,000 tons by the first week stretch of November. Besides, less expensive imports will additionally help in chilling off the prices. The burden of stock limit will quickly expand the arrival of onions into the mandis," the authority said.