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November 3, 1998

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Delhi government contradicts CM,
denies hoarding of onions

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The Delhi government today gave a clean chit to traders and refused to accept blame for the steep rise in onion prices in the capital. Instead, it said the shortfall was caused by the failure of two consecutive crops.

In an affidavit filed before a division bench of the Delhi high court, the government said the spiralling prices of onion were caused not by hoarding or lack of effort by the government, but by crop failure and non-availability of the commodity in both the national and international markets.

This is contrary to the statements of Delhi Chief Minister Sushma Swaraj and the central government that the price rise was caused by hoarding and black-marketing.

The affidavit, filed by the Delhi government's commissioner for food and supplies, K Sethuraman, denied that the government had failed in any manner to discipline wholesale and retail traders and prevent manipulation.

The affidavit was filed in reply to a public-interest petition by the All-India Lawyers Union through its counsel Ashok Aggarwal, seeking a direction to the government to immediately control the rising price of essential commodities.

It said, "To the best of efforts done by the concerned departments of the Delhi government there is no evidence of significant hoarding of onions by private traders. Arrivals of onions are disposed of without wastage in storage since prevailing prices are high."

Sethuraman said hoarding commodities like onions is impossible as they have a shelf life of only a few weeks. Onions are harvested and dried in the onion-growing areas and then transported. They are never kept in cold storage.

"Since onion has hardly any shelf life, the hoarding (sic) is not possible, hence there is no question of black-marketing the commodity," the affidavit said.

The records of the Agricultural Producers' Marketing Committee clearly show a big fall in arrival of onions due to poor crop. In comparison to last year, when 9,042 tonnes of onion had arrived till October 26, only 7,748 tonnes came to the capital in the corresponding period this year, he added.

Onions are unlike wheat and rice, for which buffer stocks can be maintained, entitlement per family can be worked out, and distributing agencies allocated stocks, the affidavit pointed out. For onions and other perishable vegetables, the government can only regulate the distribution on a "first come, first served" basis subject to availability.

Denying that the government had abdicated its responsibility, the affidavit said the state government, with the Centre's help, supplied 837 metric tons of onions from July 8 till September 25 through 70 mobile outlets in addition to the static outlets supplied by the central government.

After September 26, the government supplemented the quantity with 62 metric tons every day, which continues till date.

The division bench comprising acting Chief Justice Y K Sabharwal and Justice K S Gupta has directed H S Phulka, counsel for the central government, to file a counter on behalf of the ministry for food and consumer affairs by January 6, the next date of hearing.

UNI

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