Now, flying squads to take action against onion hoarders in Maha

Concerned over escalating prices of onion, the Maharashtra government hasformed special flying squads to take severe action against the hoarders and speculators.

Prices of onion have skyrocketed in the last two months. In one week alone, retail prices of onions have shot up to Rs 32 per kg from Rs 18 earlierdue to supply constraints following heavy rains in producer states like Maharashtra.

State agriculture minister Radhakrishna Vikhe-Patil told Business Standard “In view of rise in sudden demand for onions in the northern India,there has been deficit in the onion supply.This is a temporary phenomenon but still the government does not want to take any chance and therefore has set up flying squads to avoid hoarding and speculation especially by farmers and traders in Mumbai and around.”

[caption id=“attachment_975089” align=“alignleft” width=“380”] It would be a tough call for the government to ban shipments at a time when it is pushing for exports to reduce current account deficit.[/caption]

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The situation is even worse in Delhi.

While thewholesale price has increased to Rs 25 per kg at Lasalgoan in Maharashtra, Asia’s biggest onion market, theretail price of onion has touched Rs 30-40 per kg in Delhi.

The city government maintained that there was no shortage in onion supply in the city even as prices have increased to Rs 40 per kg in the retail market against Rs 20 per kg a month back.

Traders said the prices of onion have gone up due to two-and-half year high rates in the Maharashtra’s wholesale market on account of tight supply.

“Against a daily demand of 400 tones, we are getting supply of 1,000 tonnes of onion. There is no scarcity of onion in Delhi. Currently we have a stock of 2,000 tonnes. The retail traders have increased the rates,” Food and Supply Minister Harun Yusuf was quoted as saying by PTI.

Yusuf has asked Agricultural Produce Marketing Committee, which runs the Azadpur wholesale fruits and vegetable market, to publish the wholesale prices of major vegetables in newspapers on a daily basis so that people know the actual rates.

In the Mother Dairy’s Safal outlets, which has more than 400 stores in the NCR, onions are being sold at Rs 36-37 per kg while local vendors are charging Rs 40 per kg.

Wary of such a steep rise in onion prices that could further push up food inflation, the central government may also ban export of the commodity to improve domestic supply and keep rates under check.

Earlier, it used to tweak the minimum export price (MEP) of onion in the event of price rise. But the MEP has been scrapped since last year.

Banning exports may be a tough at a time when it is pushing for exports to reduce current account deficit.