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Onion
prices to remain high for two-three weeks: Pawar
Tuesday December 21, 2010 07:27:22 PM,
IANS
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New
Delhi: As onion prices sky rocket to Rs.70-80 per kilo,
Agriculture Minister Sharad Pawar Tuesday said the situation may
continue for the next two to three weeks while Finance Minister
Pranab Mukherjee termed it as "unfortunate", blaming a
demand-supply gap.
"Because of heavy rains, crops have been destroyed. In such a
situation, it may take two to three weeks for the situation to get
normal," Pawar told reporters here.
"The ban on export may make the situation better in some days," he
said.
The export of onions has been banned till Jan 15. The National
Agriculture Cooperative Marketing Federation (NAFED) announced
that it is taking sufficient steps to control the situation.
"The prices are already coming down. It seems like it was some
freak phenomena," NAFED Managing Director Sanjeev Chopra said.
"We have suspended exports till January 15. If the situation
becomes better we may revise it. The NOC (no objection
certificate) for the exports already approved has been raised to
$1,200," Chopra said.
"The NAFED will sell onions at stalls across Delhi," Chopra added.
Finance Minister Mukherjee blamed the supply-demand gap for the
situation.
"It is very unfortunate that onion prices have risen very high...
Now there is a mismatch between supply from mandi to the consumer
point. Those bottlenecks have to be removed and I will talk to
concerned ministries," Mukherjee told reporters.
"I hope appropriate steps will be taken. Exports have already been
banned," he said.
Commerce Minister Anand Sharma had Monday said that hoarding was
responsible for the price rise.
"The price rise is because of hoarding, there is enough stock in
the country," Sharma had said.
Commenting on hoarding, Pawar said that state governments have
been asked to act on it.
The issue has been taken up by the opposition, which blames the
government's faulty economic policies for the situation.
"It is because of the wrong economic policies and bad governance
of the UPA (United Progressive Alliance)," BJP president Nitin
Gadkari told television channels.
Communist Party of India's (CPI) D. Raja said here the government
was helpless against market forces.
"Government pleads helplessness against market forces. One
minister is saying it is bad weather, other says it is hoarding.
If it is hoarding, they must act against it and tell the nation,"
Raja said.
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