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The following article was published in our article directory on December 24, 2010.
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India Onion Rise Price and Government Concerns

Article Category: Business Management

Author Name: xia zihui

Indian onions are the main ingredients, in particular in densely populated areas to the north. The main producing areas by Western non-seasonal rainfall, onion prices soared in the past few weeks.

Now, the onion in the vegetable market to sell Rs 70 per kg, almost 5 times the normal price, with the mango prices are pretty. The Indian government estimates, one of the main producing areas of onion production may drop 16%.

Book, this increase contributed little to the consumer price index. Onion prices in the wholesale price index accounted for only 0.18% of GDP. India's wholesale price index is the benchmark to measure the level of inflation.

To see the wholesale price index, food prices rose less than earlier intense. The index in November was up 6.1% in October was 10%.

Some experts and officials believe that onion prices are not worthy of attention. Deputy Governor Reserve Bank of India's central bank said Gekaeren, onion prices will be through "the upcoming new round of rapid import of harvest or immediately stabilize."

In fact, prices of onion guard that the Government of India.

Earlier this week, the government ordered a ban on onion export month. 22, the Government ordering the indefinite extension of the abolition of import duties on onions, requiring state-owned business organizations import onions.

Congress General Secretary Rahul Gandhi said: "We will ensure that prices fall; to the Prime Minister to resolve."

Prime Minister Manmohan Singh's Office 21 letter released late show, Singh has asked the Agriculture Minister Pawar to take the necessary measures to stabilize the price of onions.

Exporters Association of Pakistan, members of fruits and vegetables, said Wahid, Pakistan exported over the past few days has been 1,000 tons of onions in India, will continue to 2000 to 3000 tons onion exports to make up for shortage of onion in India.

Government concerns about rising prices of onions is not redundant. In addition to onions, the tomatoes, lentils, garlic and other ingredients in India the price of the daily also on the rise.

India, South Asia Analysis Group, a think tank director: "If the government is facing in the short term election any time, will undoubtedly hurt." But he will not be long-term damage that image of the government, because "the public memory of short-lived."

The next major electoral state level of government is expected to be held in mid-2011. Onion prices rose sharply in 1998, the Derribong and one other state governments to pay a price in the election.

71-year-old consumers, Banerjee said that his Government's ability to control onion prices are angry, "since the onion and garlic is the key to Indian food home, I can not believe the lack of national reserves of ... ... from March, we heard prices will fall, but did not do anything. "

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