LG holds meet to review onion, potato prices

Jung chaired a high-level meeting to preview the prices of the two vegetables, whose rising costs have emerged as the top-most concern for the Narendra Modi government. In the absence of a duly-elected government in Delhi, the Lieutenant Governor has been shouldering the responsibility of administering the capital.

The National Agricultural Cooperative Marketing Federation of India Limited or  (NAFED), a statement by the LG’s officer later said, had been asked to purchase additional quantities of onion. 

NAFED is also exploring buying potatoes for the government. The managing director of NAFED assured Jung that they have the infrastructure to store, transport and preserve onions, the L-G House officials said.

NAFED can store up to 300-400 tonnes of onions and can increase its capacity further, they said.

SAFAL, the fruits and vegetable retailing arm of Mother Dairy, has been instructed to double the stocks of onions and potatoes. They can store and sell some 120 metric tonnes of onions and potatoes through their 380 retail outlets spread all across Delhi. The civic agencies, in addition, will launch 60-70 mobile vans to sell the two vegetables.

According to LG House officials, the Commissioner (Food and Civil Supplies) has also been instructed to operate 60 to 70 mobile vans across the city, where sale of onions and potatoes will take place at government determined rates.

Further, Jung directed the chief secretary to write to the Department of Consumer Affairs to issue orders on stock limits to prevent hoarding.

The LG has also asked the civic authorities and the police to crack down on hoarders to prevent speculative pricing.

Higher potato and onion prices pushed up food inflation to 9.50 per cent in May from 8.64 percent in April, setting alarm bells ringing in the Modi government.