To boost domestic supply and provide relief to consumers from rising onion prices, the Centre on Friday imposed stock limits on both retailers and wholesales with immediate effect till December 31.
Now, retailers can stock onion only up to 2 tonne, whereas wholesale traders are allowed to keep up to 25 tonne. This will check hoarding and blackmarketing, it said.
Onion prices have shot up sharply to over Rs 75 per kg in the past few weeks in the wake of damage to the standing kharif crop in producing areas due to heavy rainfall as well as hoarding.
Retailers can stock onion only up to 2 tonne, whereas wholesale traders are allowed to keep up to 25 tonne, Consumer Affairs Secretary Leena Nandan said in a press conference.
She said the government had to invoke the Essential Commodities (Amendment) law — which was passed last month in Parliament — that allows it to regulate perishable commodities in the extraordinary price rise situation.
Later, Consumer Affairs Minister Piyush Goyal tweeted: “To control rising onion prices and curb hoarding, PM @NarendraModi government has taken the third step. Imposed stock limit of 2 tonne on retailers and 25 tonne on wholesalers”.