With rising onion prices becoming a recurring problem in many parts of the country, including the national capital, the Delhi government is believed to have suggested constituting a price stabilisation fund (PSF), which would enable it to purchase onions from neighbouring areas and retail in the Capital in times of shortage. A proposal to this effect was discussed at a meeting between the Centre and state officials some weeks ago.
A price stabilisation fund would enable the state to procure and distribute onions on its own, without waiting for Central agencies such as the National Agricultural Cooperative Marketing Federation (Nafed) and the Small Farmers’ Agribusiness Consortium (SFAC), and also Mother Diary’s Safal outlets to do so in times of shortage and sudden price rise. The Centre too would contribute to the fund.
Retail onion prices, which have shot up to Rs 50-65 per kg in most cities, have come under pressure due to tight domestic supplies. In Delhi according to the data from department of consumer affairs, the prices have nearly doubled in the past one year.
The Union government last week imposed a minimum export price (MEP) of $850 per tonne on onion to increase domestic supplies and check rising prices.
Original Source: business-standard.com