India reintroduces onion export price to help curb inflation

Tags: News
India on Tuesday set a minimum export price for onions of $300 per tonne to discourage overseas shipments amid an inflation scare that threatens to stoke public anger over rising prices at local food markets.

Prime Minister Narendra Modi has made tackling inflation his top priority after widespread resentment about rising prices contributed to the exit of the previous government last month.

After wholesale price inflation accelerated to a five-month high in May, the new government imposed the price rule on onions three months after the previous administration withdrew it. (bit.ly/1lNElaf)

Until early March, the minimum export price was $150 per tonne.

Indians consume about 15 million tonnes of onions a year, using them as the base for curries and traditional dishes such as biryani and bhaji. In the past, higher onion prices have contributed to the fall of state governments.

India exports about 1.5 million tonnes of onions a year. Fears of domestic shortages have been fuelled by a scorching summer, a lack of chilled storage and a threat of strike action by distribution workers.

Finance Minister Arun Jaitley said in a post on Facebook late on Monday that the rise in prices of fresh produce could be due to withholding stocks on fears of a weak monsoon. He vowed to crack down on "speculative hoarding".

EDITORIAL OF THE DAY

  • But for market intervention, the govt has no business to be in business

    Selling equity in government owned companies has never been a priority for the Narendra Modi: the government has thus far not professed aggressive equ

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust:The mother of all battles

Gassed out after the interminable interplay of the Yadavs in ...

Rajgopal Nidamboor

Of life’s essentiality and synchrony

It is no big deal to think of psychology as ...

Anil Dharker

No women, no Cry

EDM, as you would know if you are young, (and ...