Stock limit to keep prices of kitchen items like onion, potato, pulses in check

NEW DELHI: The Narendra Modi government faces tough months ahead - from July to November - when prices of key kitchen items, particularly onion, potato and pulses, usually head north. However the stock limit norm enforcement on essential items in 24 states could keep the prices in check by reining in hoarders.

Hectic deliberations have been held in past couple of days among departments on steps to be taken in storing onion and potato in advance and preparing the roadmap to use price stabilization fund (PSF) to keep prices stable.

“As such, we monitor the prices of key commodities across all markets to understand the trend. Usually prices go up between July and Novem ber as supply dips and demand grows because of the festive season. Last year, we managed it well and we expect the same this year. At least 24 states have the stock limit norm in force after a consensus was achieved at a meeting of state food ministers held last year,“ a government official said.

Under the stock limit norm, every state has specified the quantity of items that a wholesaler and retailer can store at any given time.

Agriculture minister Radhamohan Singh said the government has already sanctioned Rs 5 crore to the Small Farmers' Agriculture-Business Consortium from the PSF for onion and potato.