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 | Onion price rise may be due to hoarding: Centre -Dipak Kumar Dash

Onion price rise may be due to hoarding: Centre -Dipak Kumar Dash

Share this article Share this article
published Published on Sep 18, 2013   modified Modified on Sep 18, 2013
-The Times of India


NEW DELHI: Onion prices have again hit the roof in Mumbai, Delhi and other major cities after stabilizing briefly in August, leading the Centre to suggest that traders and speculators might be "artificially" increasing onion prices and has asked whether a seasonal shortage in supplies is being exploited.

Onion

"Governments of Delhi and Chandigarh were addressed to look into the possibility of traders and speculators creating an artificial price increase to take advantage of the seasonal shortage," a consumer affairs department status report on onions said.

Food and consumer affairs minister K V Thomas on Tuesday said the Centre has asked onion producing states like Maharashtra to crack down on hoarders. The consumer affairs ministry has also asked all other states to ensure availability of the political sensitive commodity.

"Maharashtra was requested to ensure a steady supply from stocks into the market and intimate if there is any blockage in the supply chain that causes prices to rise," the consumer affairs department status note said.

The status of arrivals of onion shows that at Asia's largest onion hub Lasalgaon, the supply dipped to 3,000 quintals on Monday against 6,000 quintals on September 6.

Wholesale prices increased from Rs 4,140 per quintal to Rs 5,300. Similarly, in Mumbai the wholesale price increased by Rs 1,000 per quintal during this period and in Delhi the increase was Rs 800. Wholesale price reduced only in Bangalore where arrival increased by almost 300%.

Sources said that since the traders are aware that the artificial shortage will continue for some more time, they are trying to make the most of the situation. Going by trends, domestic onion prices tend to peak during September to November and fall in January-March every year.

"We have inputs that prices quoted in Pune have become the benchmark for other markets," said a senior official. He added a crackdown on hoarders and increasing the minimum export price (MEP) further can help arrest the crisis.

The man-made aspect of the onion crisis highlights the inability of governments to check hoarding and ensure steady arrival of vegetables in wholesale markets and their further distribution through retail chains.

The Centre has confirmed concerns (reported by TOI on August 17) that traders in Maharashtra's onion hub of Nashik are also deliberately releasing stocks - only 1.5 lakh tonnes less than last year - at a slow pace to manipulate prices.

The note said the month-end retail and wholesale onion prices at majority of centres in July and August showed a "sharp" increase while prices had softened in mandis in Karnataka and Andhra Pradesh where early kharif onion is arriving.

Fixing MEP at $650 per tonne onion in August has reduced exports to only 0.29 lakh tonnes last month against 1.56 lakh tonnes the corresponding period last year.

The onion crisis is likely to be discussed at a meeting of the committee of secretaries (CoS) headed by the cabinet secretary on Thursday, sources said.

Adding to the official alarm is a 50% dip in arrivals at most major mandis in the past 10 days. After plateauing briefly in August, onion prices have again hit the roof in Delhi, Mumbai, Lucknow, Nagpur, Jaipur and Guwahati.

The report is worrying news for Delhi government which faces assembly polls in November as high onion prices were seen as a prime reason for its rival BJP's ouster from power in 1998.

The Centre's communication to the Delhi administration bolsters the suspicion that hoarding and manipulation of the supply chain are an important reason for retail rates of onions shooting to Rs 70-80 a kg in the capital.

According to the consumer affairs ministry, the maximum variation in wholesale prices during September 2 and September 16 was Rs 1,900 per quintal in Lucknow.

Government officials said that there is some relief in sight as it expects availability to increase due to fresh produce from Andhra Pradesh, Karnataka and Tamil Nadu. At present, the arrival has increased in Hyderabad, Kurnool markets in Andhra Pradesh, in Hubli, Bangalore, Dhavangree, Bijapur and Raichur markets in Karnataka.

Moreover, the harvesting of main kharif season onion crop will start from end-September in the southern states while the produce from Maharashtra, Rajasthan, Madhya Pradesh and Gujarat will arrive at markets from October. Sources said the kharif onion area is likely to increase by 15%-20% due to good rains and better market prices.

Meanwhile, there are reports of commerce department's Project Export Corporation (PEC) has invited bids for supply of 3 lakh tonnes of onion in the next one months. Sources said that the agriculture department has indicated that private traders have contracted to import onion in small quantities from China. Similarly, there are reports of 10-12 containers of imported onion arriving at Mumbai port.


The Times of India, 18 September, 2013, http://timesofindia.indiatimes.com/india/Onion-price-rise-may-be-due-to-hoarding-Centre/articleshow/22672225.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