Onion traders in Azadpur mandi, Asia's largest wholesale fruit and vegetable market had gone on an indefinite strike to protest the Income Tax Department's raids on them.
Speaking to reporters in Bengaluru on the sidelines of the Eighth National Conference on Krishi Vigyan Kendras 2013, Pawar also ruled out the possibility of traders exporting onions to other countries where prices are less than India.
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A worried government on Monday decided to suspend onion exports till January 15 in the wake of skyrocketing prices of the commodity which is selling between Rs 60-70 a kg.
In the coming weeks prices are expected to further cool down as new crop from Karnataka has started coming into the market.
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Dubbing Pakistan's decision to ban onion exports across the Wagah border as "shocking", India on Thursday said the issue has been taken up with the concerned authorities in Islamabad.
The MEP has been raised from $225 a tonne in May to $495 a tonne in October. Despite this, domestic onion prices have risen sharply. They are currently available at Rs 24 -28 per kg at the retail level, compared with Rs 8-10 a kg in May.
The Wholesale Price Index-based inflation was (-)4.54% in Sep.
In a move that could further push up Onion prices, traders in Nashik and adjoining areas today went on two-day strike against tax raids and disrupted supply to contracting traders from other states who are being forced to sell the vegetable at 'below the cost price'.
In a letter to the secretaries of Departments of Consumer Affairs and Agriculture, the Prime Minister's Office said that Singh expressed deep concern over the 'extraordinary price rise'.
To check onion prices, which soared to Rs 70-80 per kg, the government slapped a ban on onion exports till January 15 to improve domestic supplies and moderate price rise.
Prices have more than doubled in three months.
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Traders estimate around 30 per cent of rabi crop damage.
Citing the sharp rise in food prices, economists at a foreign bank have forecast a steeply higher retail inflation print for July, pegging it at 6.7 per cent, up 190 basis points from the previous month. Deutsche Bank India economists led by chief economist Kaushik Das, in a report on Monday ahead of the monthly inflation print and the Reserve Bank's monetary policy review, said that the July consumer price-based inflation index (CPI) is likely to print at 6.7 per cent on-year as against 4.8 per cent in June. The Reserve Bank is widely believed to leave the key interest rates unchanged for the fourth time in its upcoming bi-monthly monetary policy decision on August 10.
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Cracking down further on hoarding, the Centre on Wednesday put onion and potato under purview of the Essential Commodities Act and imposed stock holding limits in a bid to improve availability and rein in prices.
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Prices of the kitchen staple in Azadpur mandi, Asia's largest wholesale market, were ruling at Rs 60 per kg today as supplies were below normal.
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Diseases caused by unseasonal rains have ruined almost 70 per cent of the kharif onion crop in Maharashtra this year, which is responsible for the nationwide shortage of the commodity, a senior ICAR official said on Thursday.
Onion prices have gone up 43 per cent in a year and potato is costing over 20 per cent more, but the government has said it will take "some time" before prices of the kitchen staples decline.
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In upmarket colonies, the bulb, a key ingredient in many Indian dishes, cost as high as Rs 70-80 a kg.
Currently, onion is being sold at Rs 36 per kg in retail markets of the national capital and Rs 32 per kg each in Mumbai, Kolkata and Chennai, according to the Consumer Affairs Ministry that monitors prices of 22 essential food items.
Vegetable traders further pointed out with Pakistan remaining rigid on not lifting ban despite requests made by Pakistani traders, all the orders for the import of onion now stand cancelled.
Pakistan has imposed a complete ban on the export of onion to India via Wagah-Attari land route, a development which may hit Indian government's efforts in rein in skyrocketing prices of bulb in the country.
The government has swung into action to curb onion exports and check the rise in prices in the domestic market by effecting an 8 per cent hike in its minimum export price.
The sky-rocketing price of onions has already diminished its presence on any food platte. But a street vendor in a village of Uttar Pradesh had never imagined that it could even nearly cost his life.
Rediff reader Annapoorni, 51 from Polibetta, Karnataka shared this interesting recipe.
It's the ultimate recipe to try with tomato prices skyrocketing.
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