Friday, December 24, 2010

Onion vegetable prices at zenith, inflation in red zone

Red Onion
After onions now tomatoes are pushing food inflation graph into double digits once again this  year. Onions left many teary eye in India as price for onion reached as high as Rs. 100/kg. at the start of the week. Onion price is in bit of control now as exports are banned but now red tomatoes have pushed the inflation into the red zone.

Prices of other green vegetables are also on continuous rise as it is blamed on the rain in few regions of Maharashtra. The index for food articles zoomed up 2.3% during the week making things even worse. Unexpected November rains are viewed as the major cause behind the sudden price rise in onion and other vegetables.

Experts believe that Reserve bank of India may increase the repo rate by 25 basis points by the end of the next year's first month to control the inflation and price rise in veggies. Fruit prices are also went up by 20 percent and it also affected the over all food index. If the situation remains same for few months fruits and green vegetables many disappear from the aam-admi's dish.

Opposition parties were on streets to protest high onion and vegetable prices and blamed government for the present situation and its inability to act in time to prevent this situation. Governments efforts in last two days have controlled the price of onion and kept it to reasonable levels after decision was taken to import it from Pakistan. Now price-rise in other veggies may keep Sharad Pawar and his ministry busy for coming days if not weeks.


India News Blog said...

tomatoes are adding fuel to the fire.. may god bless poor of India.. inflation in double digits for food index is certainly not a good thing.. we hope it may drop down again soon...

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