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Resource centre on India's rural distress
 
 

Food prices edge up, government keeps close watch -Zia Haq

-Hindustan Times

Edible-oil prices continue to be dearer due to high global prices, prompting the Union government last week to tighten measures

Vegetable prices, especially of tomato and onion, have risen in urban centres, including the national capital, on the back of higher fuel prices and damage to summer crops due to heavy rains, wholesale and retail trade data showed on Sunday. 

Edible-oil prices continue to be dearer due to high global prices, prompting the Union government last week to tighten measures such as requiring traders to reveal stocks.

On October 13, the Union government wrote to states to ensure prices of edible oils are brought down after cuts in import duty until March 22.

The Union government has built a record reserve of 200,000 tonnes of onions to deal with potential spikes in onion prices during the current lean season.

Prices of some food items, where seasonality plays a big role, tend to be volatile. Onion is one of them. Its rates often stoke food inflation and knock the monthly budgets of consumers, poor or rich, because the vegetable is a base ingredient of most Indian dishes. 

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