Centre invokes new Essential Commodities Act to set stock limits on onion

As per the Central order, retailers won't be allowed to hold more than two tonnes of onions with them; for wholesalers the cap is 25 tonnes

The Centre today imposed limits on the extent of onion stocks that traders and wholesalers can hold invoking a provision of the newly amended Essential Commodities Act of 1955.

The stock holding limits will be in force till December 2020.

As per the Central order, retailers won’t be allowed to hold more than two tonnes of onions with them while for wholesalers this limit will be 25 tonnes.

The Essential Commodities Act, 1955, amended a few weeks back, says the Centre will not impose stock holding limits unless there are extraordinary circumstances such as drought, floods, natural calamity or exceptional