After Tomatoes it is Onions

The rate of onions is going up. This will have an adverse effect on the coming elections.

The government’s interference is very high in onions and the recent move to impose an export duty will put pressure on prices.”

Maharashtra is the country’s top producer of onions, accounting for more than 40% of output. They are grown three times a year, twice in the rainy season and once during winter. Rains in parts of the state have been 18% below normal, stressing crops and making the government nervous ahead of the polls.

“Obviously, elections are in focus,”.The “bulk of the food price spike in July was driven by vegetables that are perishable and seasonal in nature,” . People be more concerned about commodities such as rice and wheat that tend to be more sticky.

In this context Modi should go for market intervention and bring the rates down.