Prime Minister Manmohan Singh is likely to discuss the issue of high onion prices in the Cabinet meeting scheduled for Friday. Dr Singh may also discuss with his Cabinet colleague the overall inflation issue. While the onion prices remain firm in the range of `70-80, the first shipment from Pakistan of about 750 tons is likely to come on Thursday, which is expected to give some respite to the consumers.
The Central government, sources said, is also extending the stock-holding limit of edible items for one more year to curb the prices.
The Centre has also directed the state governments to crack whip against hoarders in a bid to bring down the onion prices. While there is a growing demand within the government to ban export of onion to improve supplies within the domestic market, Nafed has suggested the government to hike the minimum export price to $950 from the current $750 for onion.
“Though the issue of onion prices is not listed in the agenda, the Cabinet could discuss the issue on Friday and Prime Minister may ask the ministry of agriculture and ministry of consumer affairs of steps taken so far to check the prices of the costly bulb,” said a senior official.
The Centre is also asking the chief ministers to report back on actions taken against hoarders on a weekly basis. “The chief ministers particularly of Maharashtra, Karnatka, Andhra Pradesh, Rajasthan and Gujarat, which are onion growing states, are being asked to take immediate action against hoarders and send a weekly report on arrests made and confiscation of the onion stock to the Centre,” added the official.
Meanwhile, the government is expecting that the arrivals of onions from Pakistan would cool down the prices in the retail market. “A high powered committee has allowed the onion shipment from Pakistan to be imported and the first lot would come on Thursday. The import will continue till supplies from southern states improve,” said the official.
Meanwhile, a status report of the Centre has stated that 90 per cent of stored onions of last year’s crop have been exhausted, with there being just about four lakh tonnes available for consumption.