Modi government asks States to rein in onion retailers

NEW DELHI: The consumers affairs department on Monday shot off letters to state governments, asking them to focus on retailers who may be pocketing enormous gains by stocking up onions and creating an artificial scarcity.

The letter was sent within hours of TOI report highlighting the huge gap between the wholesale and retail price of onions in markets such as Delhi, Mumbai, Indore and Chandigarh.

Sources said consumer affairs secretary Keshav Desiraju has pointed out that there is little reason for a sharp difference in prices given the abundant stock of onions at the moment. "We have asked states to act against such practice. Some states, including Chhattisgarh, West Bengal and Delhi, have taken certain measures which will cool down retail prices," he told TOI, when contacted.

The secretary also said the three states have sought the department's permission to impose a stock control limits on onion traders. "We are considering this issue. An order will be issued soon. But the states can take such steps and we can give the concurrence later," Desiraju said.



The steps come even as the Modi government is moving swiftly to contain possible price pressures and act against hoarding and black marketing. Sources said after government's clarion call against hoarders, the consumer affairs secretary had written to states.

Officials said the roadmap to check artificial food inflation and particularly seasonal vegetables would be taken up at the state food and consumer affairs ministers meet later this week.

They added that both immediate and medium and long term steps would be discussed. The long-term plan includes improving the supply chain while the short-term plan includes delisting certain food items including onion and potato from the ambit of Agriculture Produce Marketing Committees (APMC).

Consumer affairs ministry on Monday tweeted that a committee of secretaries will discuss the issue of price rise on July 2.