Onion storage: India should explore Israel, Brazil models, says Ficci

The price rise observed in Onions since the second week of September required proactive steps to be taken. the increase in prices of onion was being monitored very closely on a day-to-day basis through a Dashboard by the Department of Consumer Affairs and involved immediate steps to chill off the spiraling trend. The Essential Commodities (Amendment) Act, 2020 provides for the circumstances imposition of the Stock limit under extraordinary price rise. The All India average retail price variation of onions as on 21.10.2020 in comparison to last year is 22.12 % (from Rs 45.33 to Rs 55.60 per/Kg) and in comparison to last 5 years average is 114.96 % (from Rs 25.87 to 55.60 per/ Kg). Therefore, the costs have increased by quite 100% in comparison with average of last 5 years and thus the worth triggers under EC Act are reached. Thus the stock limit on the onions has been imposed with effect from today which is 25MT for Whole Sellers and 2MTfor Retailers for a period up to 31-12-2020.

In order to moderate the worth rise,the government took a pre-emptive step by announcing a ban on onion export on 14.09.2020 so on ensure availability to domestic consumers at reasonable rates, before the expected arrival of Kharif onion. Thus the retail price rise was moderated to some extent, but recent reports of heavy rainfall within the onion growing districts of Maharashtra, Karnataka,Andhra Pradesh and Madhya Pradeshhave created concerns about damage to Kharif crop.

These developments on the weather front have contributed to the sharp increase in onion prices. To bridge over this situation, the govt has stepped up disposal of Onionsthrough the built up onion buffer stock from the Rabi onion -2020 of I LMT which was doubled since the number of last years. the discharge of onion from the buffer stock is being administered swiftly but during a calibrated manner from the last half of September 2020 to major Mandis also as retail suppliers such as Safal, KendryaBhandar, NCCF, TANHODA & TANFED (Govt. of Tamil Nadu), and NAFED outlets in major cities and also through State Governments. Presently Govt. of Assam, and Govt. of Kerala (Horticulture Product Dev. Corp. Ltd) are being supplied from the retail disposal mechanism. Andhra Pradesh , Telangana and Lakshadweep have also placed their requisition for onions, which are being dispatched.

Further, Onions also are being disposed of through Open Market Sales.This will be stepped up further to bring down the worth rise.

An estimated KharifCrop of 37 LMT is additionally likely to start out arriving within the Mandis which will increase the supply of Onions.

To additionally ensure availability of onions within the Mandis, the govt has taken steps to facilitate import of onion and on 21.10.2020, the govt has relaxed the conditions for fumigation and extra declaration on Phytosanitary Certificate under the Plant Quarantine Order, 2003 for import upto December 15, 2020.

The Indian High Commissions within the relevant countries are already contacting the traders for ensuring greater imports of onions to the country. Such consignments of imported onions, which arrive on Indian ports, through land or sea, without fumigation and endorsement thereto effect on the PSC, would be fumigated in India by the importer through an accredited treatment provider. Such consignments after fumigation would be released with no additional inspection fee and an undertaking is going to be obtained from the importers that the onion is going to be used just for consumption and not for propagation. Such consignments of onions for consumption won't be subjected to a fourfold additional inspection fee on account of non-compliance of conditions important under the PQ order, 2003.

Apart from facilitating the import by the private traders, it's also been decided that MMTC would start importing of red onions to satisfy the demand-supply gap.

Requisite action under the Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, 1980 would be taken to stop any hoarding, black marketing of Onions by unscrupulous elements.

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