Wholesale price-based inflation rose to an eight-month high of 0.26 per cent in November, driven by a sharp jump in food prices, especially onion and vegetables. The WPI inflation was in the negative or deflationary zone for the past seven months since April and was at (-)0.52 per cent in October. The last positive WPI inflation was recorded in March at 1.41 per cent.
England pace bowler Graham Onions celebrated his Test debut with five for 38 as the West Indies were dismissed for 152 in reply to England's 377 all out on Day 2 of the first Test. After Andrew Strauss enforced the follow-on, West Indies were 39 for two in their second innings, still trailing by 186, when bad light stopped play.
Bharatiya Janata Party leader Sushma Swaraj on Tuesday said that the onion price rise issue was a case of "divine justice" as it would lead to the "downfall" of the Congress government which had used an earlier jump in the prices of the vegetable to oust the saffron party from power in Delhi.
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The Centre recently released the first advance estimates of kharif crops that, barring tur dal, showed a dip in production due to uneven monsoon and other natural calamities including pest attacks in cotton. The first Advance Estimates, released a few weeks back, are usually initial projections on the crop size and, more often than not, are revised as more inputs come from the fields. But, the findings have rung alarm bells in several quarters. The Centre, along with many others, is confident that as more details come, the estimates will be revised upwards.
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Retail inflation, based on Consumer Price Index, hit a 15-month high of 4.88 per cent in November
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.
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.
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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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.
In the coming weeks prices are expected to further cool down as new crop from Karnataka has started coming into the market.
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.
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The amendments to the six-and-half-decade law provides that stock holding limit on commodities will only be imposed under exceptional circumstances like national calamities, famine with a surge in prices, the minister said.
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'.
The Wholesale Price Index-based inflation was (-)4.54% in Sep.
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.
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.
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.
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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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