To curb the rise in onion prices, the Union Government has extended by one-year the ban on holding of its stock beyond the prescribed limit. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA). The validity of the order that empowers States to impose stock limits on traders for holding onion, and ban hoarding beyond the set limit expired on July 2.
The order has been extended as onion prices in both wholesale and retail markets have started increasing due to sluggish supply of good quality onion as the crop is getting damaged in storage in major growing States. High storage losses are likely to reduce availability of onions in the market, and put pressure on prices till the arrival of new kharif crop from mid-September.
