The government has been battling high retail inflation, which soared to a 15-month high of 7.44% in July, led by food prices. On August 11, the Centre announced it would start releasing stocks of onion from State-owned reserves of 300,000 tonne to boost supplies. “In order to increase the availability of onions in the domestic market especially in view of the upcoming festival season, the government has decided to impose a 40% duty on the export of onions. It was also being noticed that there was a sharp rise in exports in the recent past,” consumer affairs secretary Rohit Kumar Singh revealed.
Onion supplies are tightening in some markets and the kitchen staple could soon see an inflationary spell due to an annual lean season when stocks dip, wholesalers and analysts have said. The consumer food inflation index in July leapt to 11.51% while vegetable prices rose by a whopping 37.34%. Tomato prices saw a massive 201.54% spike. Ginger prices shot up 177%, while garlic rates soared by 70%. Green chillies increased by 50%. Common greens, such as brinjal, okra, beans, pumpkin and cauliflower were also on the boil. Onion prices rose by 11.7%. Only potato and cabbage prices fell by 13.3% and 9%, respectively.
