In a meeting held here recently to review the availability of onions in the country, the department of consumer affairs and public distribution has decided to float tenders to import the commodity so that its prices remain under control. A decision has been taken by the government to import onions and a tender has also been floated for 10,000 MT of onions which will be opened on August 27, 2015.
In this regard, secretary, consumer affairs, has urged that likewise the PSFMC meeting for onions may be called on August 27, 2015, evening itself after opening of tenders so that quick decision can be taken on the import of onions. MMTC representatives also informed that pre-tender enquiries are very encouraging. He said that after the tenders were finalised, onions could be brought by September 10, 2015.
Secretary, consumer affairs, has held a meeting with officers of the departments of agriculture and commerce, and Government of Delhi as well as representatives of Small Farmers Agribusiness Consortium (SFAC), NAFED, Mother Dairy and NHRDC among others recently.
Earlier, Ram Vilas Paswan, Union minister for consumer affairs, food & public distribution, reviewed the availability, prices,and import and export of onions and directed officers to take quick action to bring prices under control. The minister also wrote a letter to the chief ministers of states requesting them to enforce stock limit on onions and strengthen anti-holding drive to ensure its availability.
Further, after detailed discussion, it was decided that joint surveillance teams of department of consumer affairs and department of agriculture will inspect the centres where onions are being distributed in Delhi to check on the quality, quantity and prices of onions.
It was decided that a core team consisting of officials of consumer affairs, agriculture, MMTC, SFAC and NAFED would be video conferencing with the states, once the tenders were opened to ascertain requirements of the states and also the modalities of reaching the stocks to the states and the mechanism of retail distribution in the states.
It was also decided that review meetings will be held twice a week to take stock of the situation.
Meanwhile, to increase the availability of onions in the domestic market, it has been decided to raise Minimum Export Price of onions further to US$700 per MT. MEP was last increased from US$250 per MT to US$425 per MT on June 26, 2015.
To intervene in the market, SFAC and NAFED have procured 5857 MT of onion. This has been funded out of Price Stabilisation Fund meant to keep prices of essential commodities under control. SFAC has also procured 2511 MT of onions for the Delhi government, making a total stock of 8368 MT of onions. SFAC is supplying onions at Rs 30.50 per kg to Safal, which is retailing at Rs 39 per kg in Delhi. SFAC is also selling onions to consumers at Rs 35 per kg through 120 milk booths of DMS. A decision was also taken by Government of Delhi to sell onions at subsidised rate of Rs 40 per kg through 280 Fair Price Shops, which was further reduced to Rs 30 per kg. With effect from August 12, 2015.
Prices of onions have been rising on account of a decline in total production from 189.23 lakh tonne in 2014-15 as against 194.02 lakh tonne in 2013-14 i.e. a decrease of 4.79 lakh tonne. The shortfall has primarily been on account of adverse weather conditions including unseasonal rains which has impacted both the standing and harvested crop at the major producing centres.
In order to contain price rise of essential commodities a National Consultation Meeting was also held with all states/UTs ministers in-charge of food and consumer affairs on July 7, 2015, which resolved to keep prices of essential commodities, especially onions under control. It also recommended effective action against hoarding and blackmarketing to control prices of food items. Chief secretaries of states / UTs are also being reminded regularly to keep a watch on price rise and take effective action.
Union government had also made an amendment of EC Act, 1955, on July 1, 2015, to enable state governments/UTs to impose stock limits on onions for a further period of one year till July 2, 2016.
