Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Hoarding pushing up onion prices up, govt finds -Rajeev Deshpande

Hoarding pushing up onion prices up, govt finds -Rajeev Deshpande

Share this article Share this article
published Published on Aug 17, 2013   modified Modified on Aug 17, 2013
-The Times of India


NEW DELHI: The onion crisis gripping the government might be largely man made. Slow release of onion stocks by a clutch of traders rather than a shortfall in production has emerged as a key reason for retail prices rocketing to Rs 70-80 a kg.

The government uncovered the plot - hatched by traders operating from major onion markets in Nashik in Maharashtra - as it sought to figure out why a relatively small drop in production led to sharply reduced market arrivals.

"It appears that stored onions are being released slowly into the market which together with continuing demand is pushing up prices," said a note considered by a review chaired by Cabinet secretary Ajit Seth recently.

Confirming the official estimate, food and consumer affairs minister KV Thomas told TOI, "Delayed release of stocks and hoarding has been noticed. This can be a reason for higher retail prices. Concerned states have been asked to intervene and ensure steady supplies."

Thomas said the dip in production was around 7 lakh tonnes while exports rose slightly. He hoped that raising the minimum export price and tough measures by state governments would help stabilize prices in a week.

The math that puzzled officials was: Though onion production in 2012-13 declined only 5% and storage was less by just 2 lakh tonnes, market arrivals fell steeply by 20-40% in June-July 2013.

The declining arrivals made even less sense as the National Horticulture Research and Development Foundation reported onion stocks at a healthy 8-9 lakh tonnes -- sufficient to meet demand till the kharif crop reaches markets.

The price manipulation was traced to the doorstep of traders controlling release of onion stocks to Nashik's major markets of Pimpalgaon and Lasalgaon where rates are threatening to breach the Rs 5,000 a quintal mark.

Having solved the onion fiddle, at least its cause, the government is wielding the import stick to cool prices that can prove politically calamitous ahead of elections to major states like Madhya Pradesh, Chhattisgarh, Delhi and Rajasthan.

Reflecting a rising concern in government as it fights high food inflation and economic woes like a yo-yoing stock market and a sliding rupee, the Centre is pushing states to ensure quick release of stocks.

The use of laws like the Essential Commodities Act and other inspection mechanisms have been suggested while the Centre encourages states hit by soaring onion prices to explore direct contractual procurement.

The August-September season is seen as a lean time when the extent of depletion of stocks depends on the previous rabi (winter) production, storage and export demand.

The estimated storage in Maharashtra in 2013 - the state accounts for around 32% of production - is down by a mere 50,000 tonnes at 15 lakh tonnes. Storage is down by 1 lakh tonnes in Gujarat and it has not fluctuated much in other states.

Early arrival of the rabi crop saw an increase in exports in April and May but thereafter, the trend shows a declining curve, again spurring suspicion of supply manipulation being the reason for ascending retail prices.


The Times of India, 17 August, 2013, http://timesofindia.indiatimes.com/india/Hoarding-pushing-up-onion-prices-up-govt-finds/articleshow/21872501.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close