New Delhi: To check volatility in prices of onion and potato, Food Minister Ram Vilas Paswan Thursday said there is a need to set up warehouses for storing these two commodities to ensure supply during the lean season.
"We see onion prices rising every year during the June- September period. This cyclical price rise can be avoided if we can create 15-20 godowns," Paswan said at a seminar organised by the India Today Group.
Unlike wheat and rice that are stored by state-run Food Corporation of India (FCI), there is not enough storage space of vegetables across the country, he said.
As FCI is expanding storage space over the years, Paswan said that there is a need to create godowns for vegetables and fruits. He also added that such a scheme was intiatated during the NDA regime.
Noting that hoarding is the key reason for price rise in onions, Paswan said that much of the powers to act against hoarders and black marketeers lies with the states.
"There are acts like Essential Commodities Act and Prevention of Black Marketing Act. But their implementation lies with the states. We can only empower them to take stern action," he added.
Yesterday, the Centre decided to bring onion and potato under the purview of the stock holding limits under the Essential Commodities Act, 1955 and empowered states to take action against hoarders. It has also imposed minimum export price on onion and potato to improve domestic supplies.
Paswan also said the issues related to food inflation and implementation of food law will be discussed in tomorrow's meeting with the state food ministers.
Cracking down on hoarders, the Centre yesterday put onion and potato under purview of the Essential Commodities Act and imposed stock holding limits on these two crops in a bid to improve availability and rein in prices.
The government also hiked the minimum export price (MEP) on onion at USD 500 per tonne from USD 300.
Last month, the MEP on onion was re-introduced at USD 300 per tonne barely three months after the previous government in March had abolished it. MEP is the rate below which no exports are allowed.
Onions were sold at Rs 31 per kg and potatoes were available at Rs 28 per kg in the retail market in the national capital.
However according to official data, onions were sold at a wholesale rate of Rs 19 per kg in the national capital today, while in Mumbai it stood at Rs 21 per kg.
In Chennai it was at Rs 24 per kg and in Kolkata onions were available for Rs 22 per kg.
