Govt extends ban on hoarding onion beyond prescribed limit by 1 year

 
New Delhi, July 1 (KNN) In a bid to curb the rise in onion prices, Cabinet today 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), headed by Prime Minister Narendra Modi.

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. 
The government has also increased the minimum export price of the commodity to USD 425 per tonne and is also planning to import some quantities of onions to boost domestic availability. 

India's onion production is estimated to have declined to 189.23 lakh tonnes in the 2014-15 crop year (July-June), as against 194 lakh tonnes in the previous year, as per government data. (KNN Bureau)