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With cost of onions inching towards Rs 40 per kg in Delhi, government has fast-tracked procurement of approximately 10,000 tonnes of the key kitchen staple, which can be sold in the open market through fair price shops to stabilize prices.
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With cost of onions inching towards Rs 40 per kg in Delhi, government has fast-tracked procurement of approximately 10,000 tonnes of the key kitchen staple, which can be sold in the open market through fair price shops to stabilize prices. Observers said that wholesale prices have increased substantially as farmers are bringing less quantity to mandis and are waiting for better price. Sources said government-controlled agriculture cooperative Nafed and Small Farmers' Agri- Business Consortium (SFAC) have already been asked to procure onion from major mandis and even to weigh option of importing the item. Prime Minister's Office has also asked different departments to have the plans in place to avoid any crisis or abnormal price rise, which is likely considering increase in wholesale prices at major mandis. Officials said that PMO is concerned about price spike in the national capital. At India's largest wholesale onion market of Lasalgaon in Maharashtra, the average price has increased by 54% in two weeks to Rs 2,550 rupees per quintal, which is the highest since November 2013. Annual consumption of onion in India is about 15 million tonnes. Onion production in 2014-15 was 18.9 million tonnes, but 20% of it has been damaged due to untimely rains and hailstorms during February to April. Meanwhile, government expects to import 5,000 tonnes of arhar dal by August end to push availability and the tender for importing another 5,000 tonnes of urad dal will be out in the next few days.
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