Govt takes rearguard action as onion price threatens to spiral out of control

The farm-fresh stores in Chennai would commence sale of onions at Rs 45 from Wednesday, while it would be extended to other parts of the State from Thursday, State Cooperation Minister Sellur K Raju said on Tuesday after holding a review meeting with officials from the department on Tuesday to discuss measures to arrest the surge in price.

“Onion price surge during every monsoon. The State government has been constantly monitoring the supply to ensure the price is not inflated. The government had made budget allocations to purchase onions at wholesale price. It will be sold with a small margin to help the public,” added the Minister.

Onion was being sold for around Rs 50 to Rs 65 till last week. However, the severe shortage of supply at the Koyambedu wholesale market complex sent up the wholesale and retail prices within a matter of days. Now, it is being sold for Rs 85 and above at various markets across the city. This has brought back memories of the severe shortage and resultant price rise that the State had faced last year. Pointing out that heavy rains in neighbouring states and also Maharashtra affected of the supply of the produce, the Minister said the authorities were monitoring onion trade on a daily basis and that all efforts were being taken to reduce the price.

“During the last monsoon season, the State had procured onions directly from Egypt which brought down the price. Officials from the Cooperation Department have started purchasing new stock; the consignments are on the way to Chennai,” said a senior official. Meanwhile, the Cooperation Department observed the World Statistics Day earlier in the day. In his address, Minister Sellur Raju pointed out that statistics and data were very crucial for the government departments to evaluate the schemes and the economic prospects. Chief secretary K Shanmugam, Additional Chief Secretary Jayashree Raghunandhan and Agriculture Secretary Gagandeep Singh Bedi also took part in the event.