Onion prices double, stir up trouble in election year

Comments print
Reuters: Mumbai, Feb 08 2013, 15:47 IST
Onion prices have climbed sharply in India following a drought, a worry for the government as it heads into state elections that have been known to turn on the cost of the vegetable.

Prices have more than doubled in the last three months and no respite is in sight. Supplies remain tight as low rainfall has cut sowing and curtailed growth of individual bulbs.

Indians eat their way through 15 million tonnes of onions a year, using them as the base for traditional dishes such as biryani and bhaji and making them a hot political issue and a kick to inflation when the price rises.

"I don't understand how suddenly prices skyrocket. I have to buy at whatever price vendors are asking. I can't buy less just because prices are high," said Pooja Kadakia, 28, a housewife shopping in central Mumbai.

Onions cost 35 rupees (66 U.S. cents) per kg on Friday, compared with 10 rupees three months back. Further increases look likely, with food inflation running in double digits.

"Planting is down in all the major producing states. There is severe water scarcity in Maharashtra, Gujarat and Karnataka," Satish Bhonde, a director at the National Horticultural Research and Development Foundation, told Reuters.

Bhonde predicted a 10 percent drop in production from last year. India produced a record 17.5 million tonnes in 2011/12.

Relief could come with the new crop in October, but the government faces 10 state elections this year and needs a good summer monsoon. National elections are due next year.

The opposition Bharatiya Janta

... contd.

Ads by Google
   1 | 2 | 3 | Next
Previous Story  Hindalco net profit falls 4%, new units to go on stream next fiscal Next Story  Gold prices extend gains for second day on sustained buying
Reader's Comments| Post a Comment

Be the first to comment.

Post your Comment

Your email address will not be published. Required fields are marked *

Name *
Email *
Message *
 
captcha
please enter the above characters in the box below