Lok Sabha Question No. 4086 (UNSTARRED), answered on 2018-03-20
Subject: Increase in Price of Vegetable
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: ANSHUL VERMA

## Government of India Ministry of Consumer Affairs, Food and Public Distribution

## Department of Consumer Affairs

## LOK SABHA

## UNSTARRED QUESTION NO. 4086

TO BE ANSWERED ON 20.03.2018

## INCREASE IN PRICE OF VEGETABLE

4086.   DR. ANSHUL VERMA:

## Will  the  Minister  of  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether retail prices of onion and tomato had jumped to almost Rs. 60 per kg in many cities in November this year, if so, the details thereof;
- (b) whether steady and continuous rise in prices of tomato and onion without any plausible reason indicates possibility of hoarding of these commodities and if so, the details thereof;
- (c) whether production of onion and tomato has reduced in the current season as compared to the last season, if so, the details thereof and if not, the reasons for the rise in price of onion and tomato in retail market; and
- (d) the steps being taken for proactive role of Government to control the prices of onion in future?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI C.R. CHAUDHARY)

(a)  :   As per the information provided by various State Civil Supplies Departments, the retail prices of onion and tomato has reached ₹.60 per kg in some cities on some days during November, 2017.

(b) & ( c)   :   As per all India 2017-18 (1 st Advance Estimate) of Area and Production of Horticultural crops, brought out by Department of Agriculture & Cooperation, there has been a decline in crop area (8.4%) and production (5%) of onion during 2017-18 as compared to previous year. Also, prices of vegetables  including  onion  and  tomato  are  determined  by  various  factors  such  as  demand-supply mismatch, weather conditions affecting production and availability, seasonality, increased transportation  costs,  supply  chain  constraints,  artificial  shortage  created  by  hoarding  and  black marketing etc.

(d)  :    Government  took  various  measures  to  control  the  rising  price  of  onions.  Vide  Notification No.39/2015-20  dated  23.11.2017  brought  out  by  DGFT,  export  of  onions  were  permitted  only  on Letter of Credit subject to Minimum Export Price (MEP) of USD 850 F.O.B per Metric Ton. In view of moderation in domestic prices of onions the MEP was subsequently reduced to USD 700 F.O.B per  Metric  Ton  vide  DGFT  Notification dated  19.01.2018 and has been completely withdrawn till further orders, since 02.02.2018. In addition, Government also enabled States to impose stock limit on onions and advised the producing States to take action against hoarders/traders engaging in illegal practices.  MMTC  was  directed  to  import  onions.  However,  no  bids  were  received  against  tenders floated  by  them.  Government  also  directed  NAFED  and  SFAC  to  procure  onions  from  producing regions  for  supply  in  consuming  areas.  In  addition,  Government  is  implementing  Mission  for Integrated  Development  of  Horticulture  (MIDH),  for  holistic  growth  of  the  horticulture  sector covering fruits, vegetables, etc. Besides, Government is also implementing Price Stabilization Fund (PSF) scheme to help moderate the volatility in prices of agri-horticultural commodities like onion, potato and pulses.

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