As per reports, the Centre had earlier written to the State government to prepare itself for the possible hike in onion prices and directed to take "timely ameliorative measures to tackle any potential crisis in onion during the lean season."
A seven percent decrease in onion production is expected this year as against the previous year.
However, farmers in the State, especially in the western belt, are facing problems like distress sale of onion and lack of proper market even after sufficient production of onion in the region. In districts like Balangir, Kalahandi, Nuapada and Deogarh, farmers are even forced to sell onion at Rs 5 per kg. Lack of storage facility is also adding to their woes.
After receiving letter from the Centre, the food and supply department has called a meeting of the concerned departments on May 24. "I will look into the issue during the scheduled meeting to tackle the potential price rise situation," said food supplies minister Surya Narayan Patro.
"We expect a rise of Rs 25 per kilo in onion price. The government must ensure proper storage facility to tackle the potential crisis," said Sudhakar Panda, general secretary of Odisha traders association.