To contain onion prices, the Centre on Friday imposed stock holding limit on retail and wholesale traders till December 31 to improve the domestic availability of the commodity and provide relief to consumers.
Retailers can stock onion only up to 2 tonne, whereas wholesale traders are allowed to keep up to 25 tonne, Consumer Affairs Secretary Leena Nandan said in a press conference.
She said the government had to invoke the Essential Commodities (Amendment) law — which was passed last month in Parliament — that allows it to regulate perishable commodities in the extraordinary price rise situation.
Later, Consumer Affairs Minister Piyush Goyal tweeted: “To control rising onion prices and curb hoarding, PM @NarendraModi government has taken the third step. Imposed stock limit of 2 tonne on retailers and 25 tonne on wholesalers”.
Onion prices have shot up sharply to over Rs 75 per kg in the last few weeks in the wake of damage to standing Kharif crop in producing areas due to heavy rainfall.
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