Onion prices have soared since the past few weeks on account of a fall in production of the Kharif crop following unseasonal rainfall in key cultivating states like Maharashtra.
The Centre has further reduced stockholding limits for onion retailers from 5 tonnes to 2 tonnes, according to a CNBC-TV18 flash. It has also directed states to take take steps to prevent hoarding of onions in order to check the rising prices.
Earlier this month, the government had slashed the onion stockholding limit for retailers from 10 tonnes to 5 tonnes, while the same for wholesalers was brought down to 25 tonnes from the then limit of 50 tonnes, as per a report in Business Standard.
Amid rising prices of the bulb, the Centre has also approved an import of 36,090 tonnes of onions, of which 21,090 tonnes are already contracted -- 6,090 tonnes from Egypt and 15,000 tonnes from Turkey, Business Today reports.
The government had earlier in September enacted a ban on export of onions in order to retain domestic supply. However, the ban on overseas sales of onions by India has been keeping the price of the bulb elevated across Asia.
Reports also suggested that the government may keep the ban on onion exports in place until February 2020 amid the ongoing situation.
Onion prices have been riding high since the past few weeks on account of a fall in production of the Kharif crop following unseasonal rainfall in key cultivating states like Maharashtra. Prices soared to a record high of Rs 200 a kg from the usual Rs 25 per kg due to a decreased supply in the market.On December 6, price of onions was ruling at around Rs 120 per kg in Mumbai, Chennai and Kolkata, while it was around Rs 100 per kg in Delhi.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.