Onion price hike

Onion prices go high in India due to shortage occurred past week caused by unusual heavy rain in onion growing areas.

Food price inflation is a biggest headache for a coalition government struggling with a slew of corruption allegations and an emboldened opposition.
On Monday Agriculture ministry banned exports of the staple food until 15th of January, and will import onions from Pakistan as prices jumped to 80 rupees ($1.77) per kg from 35 rupees per kg last week.

Agriculture Minister Sharad Pawar told reporters on Tuesday, “The situation will be normal in two to three weeks. Onion prices rose because of rains in Nasik and other onion growing areas, the ban on onion exports should help reduce the prices.”

Onions are base ingredients for almost all Indian dishes. Food price inflation has retreated over the past three months, but at a high 9.5 percent is a worry for the ruling Congress party ahead of state elections next year.
On Monday, Prime Minister Manmohan Singh told his party that inflation “remains a cause for serious concern in our country”.

Officials were considering opening special outlets to sell onions at wholesale rates as the government looks for ways to lower prices, the Press Trust of India reported on Monday.
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