Onion Prices rise to Rs 70-80 Per Kg

The onion prices in India have skyrocketed to Rs 70-80 per kg, thanks to short in supply across the country. Food Minister KV Thomas has assured the nation that prices will come down within a fortnight. There has been a jump of 245% in onion prices in August 2013 as compared to the corresponding period last year, portraying a gloomy picture for future.

There is a shortage in major onion producing markets such as Maharashtra, Rajasthan, Gujarat and Madhya Pradesh. In Nashik, onion prices stand at Rs 57 per kg, resulting in spiralling prices in other parts of the country.

As a result of rising onion and fuel prices, India’s Wholesale Price Index (WPI) has gone up to 6.1 per cent in August, up from 5.79 per cent in July 2013. The food inflation has gone up by 12.4% in a year. At the same time, the vegetable prices have seen a steep 77.8 per cent rise.