To keep the onion prices under control, the Union Cabinet has approved the government's decision to import onions. The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the government's decision to import 1.2 lakh tonnes of onions.
While informing the media about the decisions taken in the cabinet meeting, Union Finance Minister Nirmala Sitharaman said on Wednesday that the Cabinet has approved the import of 1.2 lakh tonnes of onions.
It is worth noting that due to heavy rains at the end of the monsoon season, onion prices have increased drastically in the country due to loss of onion crop. On Wednesday, the wholesale price of onion was increased by Rs 10-15 per kg in the capital of the country.
Union Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan had announced to import one lakh tonnes of onions this month with the objective of increasing the availability of onions in the country. MMTC, a central government company doing foreign trade, has also issued a tender to import 4,000 tonnes of onions.
According to news agency IANS, the wholesale price of onion in Delhi's Azadpur mandi was Rs 40-60 per kg. A trader at the mandi said that onion prices increased by Rs 10-15 per kg compared to the previous session due to a decrease in arrivals.
The retail price of onion in Delhi-NCR was Rs 60-80 per kg. A few days ago, the retail price of onion in the country's capital had gone up to Rs 100 per kg.
Why is the price of onion rising?
Due to unseasonal rains, onion crop has suffered a lot. Due to heavy rains in October and November, the onion crop in Nashik, Ahmednagar and Pune has suffered a lot. Traders have expressed the possibility of further increase in prices. Most farmers are selling their old stock only.
The new onion has deteriorated due to rain. Therefore, onion producing farmers say that the price of old stock of onion will be higher. Anyway, onion production had reduced last year. In the wholesale market, onion prices have registered a 4-fold increase during the last 3 months.
Indian missions in Afghanistan, Egypt, Turkey and Iran have been asked to supply onions to India. The decision to import onion indicates that its domestic availability is not sufficient. The government is trying to supply onions from Maharashtra and other southern states to northern India.