Wholesale onion price at Lasalgoan in Maharashtra, Asia's biggest market for this kitchen staple, has shot up by 70 percent in just about a month -- hitting its highest level for the month of July in the past two decades.
Fearing spurt in vegetable prices, the Centre on Tuesday asked states to crackdown on hoarders, ensure adequate supplies and remove inter-state trade barriers even as it considers making a second import of pulses to cool prices.
The Reserve Bank on Tuesday said assuming reasonable food management, inflation is expected to be pulled down by base effects till August but to start rising thereafter to about 6 percent by January 2016 – slightly higher than the projections in April.
With inflation dropping to a new low in April, industry bodies have reaffirmed demand for a rate cut, saying it provides ample space for the RBI to slash the key policy rate to fuel investments and propel growth.
In 2009, the El Nino brought the worst drought in four decades to India. It razed wheat fields in Australia and damaged crops across Asia. Food prices surged. A closely watched forecast by Japan will confirm its return this year as all but certain now.