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Onion selling at Rs 80 a kg, Modi minister says he is helpless in controlling price

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Even as onion soars to Rs 80 a kg in New Delhi and other markets, Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan today said he is “helpless” in controlling its price.

Pyaaz ki qeemat kam karna mere haath mein nahi (I am helpless in controlling the price of onion),” Paswan told India Today after holding a meeting of top officials on the rising onion prices.

Paswan said the production this year was expected to be lower since the area under onion cultivation had reduced to 1.90 lakh hectares in 2017-18 from 2.65 lakh hectares in 2016-17.

“We have taken several measures, such as procurement by agencies from areas such as Nashik (Maharashtra) and Alwar (Rajasthan) where the cost is lower, as well as import of onions. But it (bringing down prices) is not in our hands,” Paswan told reporters.

Paswan said the state governments and the Centre have to combat the problem together. “The Centre is working towards this with full force. We hope prices will go down. I don’t have an answer if you ask me when and how will it go down,” he said.

“I have asked the Delhi government to sell onion under PDS. I have also asked Maharashtra and other state governments to sell after purchasing at lower prices. If you have a suggestion, feel free to give it to us, we’ll think about it,” Paswan said.

Paswan said the main onion-producing states like Karnataka and Maharashtra have witnessed a slump in production. “We have reduced export of onion. Export incentives on export have been stopped,” he added.

“In Nasik, onion is still being sold at Rs 32 per kg. If you add the transport cost, then too it should not be more than Rs 40 per kg. In Rajasthan’s Alwar its still being sold at Rs 28 to Rs 30 a kg,” he claimed.

On Thursday, Paswan’s ministry had notified the Minimum Export Price (MEP) of onion at $850 per tonne to discourage export against the backdrop of rising prices locally. A day before that, he said the public sector body MMTC would import 2,000 tonnes of onion.

According to a report on Tuesday, the price of onion at New Delhi’s Azadpur mandi, which is Asia’s largest vegetable market, was between Rs 50-60 a kg. The same onion was being retailed at Rs 80 per kg.

India Today

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