Hoarding of Onions

New Delhi: CCI does not decide on the prices of onion. However, CCI had conducted an inquiry relating to unusual rise in price of onions in December 2010 – January 2011. Accordingly, the Commission has passed final order u/s 26(6) vide order dated 10.04.2012 in a Suo-Moto Case No. 01/2011. The case was closed by the Commission due to absence of any evidence of collusion or cartelization among the traders/Commission agents or any other players in the supply chain.

Prices of onions are inter-alia affected by mismatch in demand and supply, shortfall in production owing to adverse weather conditions and seasonality, increased transportation costs, supply chain constraints like lack of storage facilities, artificial shortage created by hoarding and black marketing, etc.

Government, on 29.09.2019, imposed stock limits on onion traders across the country – 100 quintals on retail traders and 500 quintals on wholesale traders under the Essential Commodities Act, 1955. Further, Government of India has urged State Governments to hold regular meetings with the traders of Onions at State and District level to prevent hoarding, speculative trading and profiteering, unfair and illegal trade practices like cartelling, etc.

This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Danve Raosaheb Dadarao in Rajya Sabha today.

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