This Article is From Sep 17, 2013

Onion prices will come down in a fortnight: Food Minister KV Thomas

The huge rise in the prices of onions has brought tears to the eyes of many

New Delhi: Food Minister KV Thomas promised today that onion prices would come down in a fortnight.

"Onion prices will come down in 15-20 days," the minister told NDTV, blaming wastage of food and hoarding of the crop as some of the reasons behind the soaring prices.

Part of the blame also lies with the states which did not procure onions on time despite warnings, he added.

Data released on Monday, recorded a 245 per cent annual jump in the prices of the unpretentious onion, driving headline inflation to a six-month high and food inflation to a three-year high of 18.18 per cent in August; the benchmark Wholesale Price Index is up by a stronger-than-expected 6.1 per cent.

Onions are a staple ingredient in many Indian dishes and rising prices of the vegetable anger voters and can quickly become a political issue. Mr Thomas' party, the ruling Congress, is keenly aware that general elections are due within eight months.

Onions cost about 245 per cent more in August than a year before, while other vegetables shot up by 77 per cent. Eggs, meat and fish were up nearly 19 per cent.

"Every day I am making meals using only one small onion, half for the morning meal and another half for dinner," said Santilata Behera, 34, a labourer who supports a family of three and has cut her onion buying to half a kilogram per month.

Farmers are expecting food prices to start moderating from October onwards as supplies rise from crops planted after the much better monsoon season. However, heavy rainfall has resulted in flooding in some areas of the country making it difficult to get produce to market.

More price pressure could come in the form of a government plan to hike retail fuel prices by nearly 10 per cent to ease its oil subsidy burden, which has risen after the rupee's fall and on higher crude prices.

Analysts estimate that such an increase in diesel prices would directly add 0.5 per cent to headline inflation.

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