The Government has imposed a stock limit on the onions with effect from October 24, 2020.
- The stock limit is 25 Metric Tonnes for Wholesalers and 2 Metric Tonnes for Retailers for a period up to 31st December 2020.
- In order to moderate the price rise, the government took a pre-emptive step by announcing a ban on onion export in September 2020 so as to ensure availability to domestic consumers at reasonable rates, before the expected arrival of Kharif onion.
- Export ban was announced even as the central government amended the Essential Commodities Act, 1955, to delink onions, potatoes, pulses, oilseeds, and edible oil from the purview of the Act, on September 22.
Causes for onion price rise
- 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.
- The developments on the weather front have contributed to the sharp increase in onion prices.
