Polls defer Govt decision to free up trade in onions

The proposal is to take onions off the list of 16 items whose bulk movement and storage are restricted under the Essential Commodities Act.

Under the Act, prices of onion along with its supply and trade are regulated by the government. Its exclusion will allow traders to move onions in bulk without fear of confiscation as well as export them without prior permission of the government.

It would also remove the contradiction between state control orders and the ECA since state governments have yet to notify onion in the control order.

Onion was brought under the Act in 1999 after a short supply and consequent high prices resulted in a poll debacle for the Bhartiya Janata Party in three states.

Also on the agenda, is an increase in the house rent allowance for central government employees to a high of 35 percent from the current 30 per cent provided for Delhi and Mumbai, said sources. For other cities, the allowance is proposed to be raised to 20 percent from 15 percent.

The HRA review follows the re-classification of cities in 2001 Census and is likely to benfit sub-ordinate staff who do not get government accommodation. The resultant outgo from the national exchequer was not immediately known.

PTI reported that the Cabinet could also discuss a special Voluntary Retirment Scheme for employees of public sector undertakings. The special package was being taken up in the backdrop of government’s decision to merge dearness allowance with the basic salary, it added.