Govt imposes stock limits on onion traders to check prices
New Delhi: To boost domestic supply and provide relief to consumers from rising onion prices, the Centre on Friday imposed stock limits on both retailers and wholesales with immediate effect till December 31.
Now, retailers can only stock onion up to 2 tonnes, whereas wholesale traders are allowed to keep up to 25 tonnes. This will check hoarding and blackmarketing, it said.
Onion prices have shot up sharply to over Rs 75 per kg in the past few weeks in the wake of damage to the standing kharif crop in producing areas due to heavy rainfall as well as hoarding.
Addressing media, Consumer Affairs Secretary Leena Nandan said, "This is a decisive step. We have imposed stock limits on onion traders with an immediate effect till December 31 after concerns that traders were releasing their stored stocks slowly, creating artificial price rise situation."
She said the government had to invoke the recently passed Essential Commodities (Amendment) Act, 2020, which provides regulation of agri-commodities "only" in the times of extraordinary price rise situation.
"Under this law, normally, we would not be regulating agri-food stuff like cereals and onion. But, in times of extraordinary price rise, we can regulate if the retail price breaches the trigger levels specified in the law," she said.
In case of onion, the average all-India retail price of onion of Rs 55.60 per kg that prevailed on October 21 breached the trigger level as per the formula specified under the EC Amendment Act, she said.
The all-India average retail price of Rs 55.60 per kg was higher by 22.12 per cent compared with last year's rates of Rs 45.33 per kg and by 114.96 per cent as against average rate that prevailed in past five years. So, the retail price had actually more than doubled and, therefore, decided to impose the stock limits on the commodity, she added.
Later, Consumer Affairs Minister Piyush Goyal tweeted that the Modi government has taken third step to curb hoarding and check prices. Stock limits have been imposed on retailers and wholesale traders of onion.
The government said action under the Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980, would be taken to prevent any hoarding, black marketing of onions by unscrupulous elements.
Highlighting other measures taken to cool down the spiralling trend in onion prices, the secretary said the government has decided to augment domestic supplies through imports for which state-owned MMTC would soon float a tender for red onions to meet the demand supply gap.
Recently, the government relaxed fumigation and phytosanitary norms for import of onion and activated Indian consulates to facilitate trade, she said.
The secretary said the government had taken a pre-emptive step by announcing a ban on onion export on September 14 itself so as to ensure availability to domestic consumers at reasonable rates, before the expected arrival of kharif onion from next month.
"Thus, the retail price rise was moderated to some extent but recent reports of heavy rainfall in the onion-growing districts of Maharashtra, Karnataka, Andhra Pradesh and Madhya Pradesh have created concerns about damage to kharif crop," she said.
She also said the developments on the weather front have contributed to the sharp increase in onion prices.
However, to tide over the present situation, the government has stepped up offloading of onion from its buffer stock of 1 lakh tonne created in 2019-20, which is being carried out swiftly but in a calibrated manner from the second half of September, she said.
The secretary further said onion from the government's buffer stock is being sold in major mandis as well as retail suppliers such as Safal, Kendriya Bhandar, NCCF, and NAFED outlets in major cities and also via states.
Currently, Assam and Kerala governments are being supplied from the retail disposal mechanism. Andhra Pradesh, Telangana and Lakshadweep have also placed their requisition for onions, which are being dispatched, she said.
Further, onions are also being disposed of through open market sales and this will be stepped up further to bring down the price rise.
The government said kharif crop is likely to hit mandis from next month. The estimated arrival of 37 lakh tonne of kharif onion crop will improve availability, she added.
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What is Iran’s 10-point plan? Key demands ahead of US talks in Islamabad
Tehran/Islamabad: Iran has outlined a 10-point plan as the basis for upcoming talks with the United States, expected to begin in Islamabad on April 11, according to a statement from the Iranian Supreme National Security Council.
The plan lays out Tehran’s key political, military and economic demands, and is being seen as a framework for negotiations following the recent escalation in the region.
Strait of Hormuz at the centre
A major focus of the plan is the Strait of Hormuz, a critical global shipping route. Iran has proposed “controlled passage through the Strait of Hormuz in coordination with the Iranian armed forces,” which it says would give the country a unique economic and geopolitical position.
The plan also calls for the “establishment of a safe transit protocol” in the Strait that would guarantee Iran’s dominance under an agreed mechanism.
Call to end conflict
Iran has demanded “the necessity of ending the war against all elements of the axis of resistance,” signalling its expectation that hostilities should stop not only in Iran but also involving allied groups in the region.
US troop withdrawal
Another key demand is the “withdrawal of US combat forces from all bases and deployment points in the region,” indicating Tehran’s long-standing position against American military presence in West Asia.
Sanctions relief and compensation
The plan places strong emphasis on economic measures. It calls for “full payment of Iran’s damages according to estimates,” along with “the lifting of all primary and secondary sanctions and resolutions of the Board of Governors and the Security Council.”
It also seeks “the release of all Iranian assets and properties frozen abroad,” which have been a major point of contention for years.
Binding global guarantee
Finally, Iran has demanded that all these terms be formally recognised through “a binding Security Council resolution,” suggesting it wants international legal backing to ensure enforcement.
What this means
The 10-point plan reflects Iran’s broader push for security guarantees, economic relief and regional influence. The upcoming talks in Islamabad are expected to test how far both sides are willing to negotiate on these demands.
