Onion, potato out of essential commodities list, prices inching up

NEW DELHI: In the coming days, residents of Delhi could have to shell out more as prices of onion and potato are likely to rise. In Asia’s biggest Azadpur wholesale vegetable market, onion is being sold at Rs 23 per kg and potato is Rs 26.50 per kg. As per reports, this pushes the retail price to Rs 45-50 per kg for onion, Rs 50 per kg for potato. 

As per the wholesale traders in the Azadpur and Ghazipur vegetable market, the main reasons for the surge in prices maybe rain, lockdown and amendment in the Essential Commodities  Act. This year onion farming in Nasik and Pune has suffered great damage due to rains and the coronavirus-triggered lockdown has also created hurdles, eventually resulting in the supply problem. 

According to the traders in Delhi, this current stock of onion is supplied from cold storage. Looking at the situation, onion is now being ordered from Indore, Madhya Pradesh aswell. According to Adil Khan, chairman, Azadpur Produce Marketing Corporation (APMC) another reason that could shoot up the prices in the coming few days is amendment to the Essential Commodities Bill.

In June this year, farm produce like cereals, pulses, oilseeds, edible oils, onion and potatoes were removed from the list of essential commodities, says Khan this is causing problem for the farmers. “Onion-is not an essential item anymore, the changes in Essential Commodities Act by the central government is leaving farmers in distress. Most of the farmers want to sell their produce as soon as it harvested.

But now as it is not an essential item, the produce in left in cold storage and waiting for it to sell and then getting the money is driving the price up. These changes have disrupted the market” explained Khan. 
The crucial Essential Commodities (Amendment) Bill is part of the agriculture reforms bills that the Centre is pushing to raise farm incomes. The freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/foreign direct investment into agriculture sector, the government had said earlier.