Cap on onion storage to prevent hoarding

Decision comes in the light of black marketing by traders; prices likely to stay high till January 2020


Rising onion prices have turned into a national phenomenon, highlighting the failure of authorities in controlling the situation. Pune is no different on this spectrum as onions, now Rs 160 a kg, is showing no signs of mounting a reasonable sale price anytime soon — this despite the vegetable being imported from Egypt and Turkey. In such circumstances, certain traders have taken to black marketing, thus creating artificial inflation.

To curb the scenario, Pune Agricultural Produce Market Committee (APMC) has issued a diktat to the wholesalers and retailers in Shree Shiva Chhatrapati Market Yard in Gultekdi and other markets to maintain a cap on the stock of onion. APMC has received the directions from the department of consumer affairs and civil supply. It had recently asked the state government to impose stock limits on traders and ensure strict action against hoarding.

However, the situation is not likely to change until January. Even the imported onion is also being sold between Rs 80 and Rs 100. Its substandard quality is not a hit among the consumers, especially hoteliers and mess operators as the large amount of moisture is not suitable for gravy preparations.

An officer attached with Pune APMC affirmed of the directions issued by the department of consumer affairs and civil supply. “It has asked us to maintain considerable buffer stocks, impose stock limits on traders and to ensure strict action against hoarding. We will take action against the traders if they attempt to horde onions. We will check the storage areas and warehouses,” said the officer.

A wholesaler is not allowed to stock more than 50 per cent of his storage capacity, said BJ Deshmukh, administrator of the Gultekdi APMC. “The retailers can keep only five per cent in stock. Those found guilty will face action under law,” he said.

Deshmukh reasoned the rising prices to the crop damage in monsoon, more so to Pune which is a key producer. Now, the government has banned export. “It has supplied buffer stock and more onions will be imported by January 20, 2020,” he said, adding, “The onion prices will continue to remain firm till January when late kharif crop hits the market.”