The Union government has removed the six-month-long ban on onion exports, albeit with the qualification of a minimum export price. Food items account for 39% of India’s food basket and have been the biggest factor for inflation not meeting the RBI’s target of 4% in the recent past. Because most of India’s food inflation problem is related to climate-inflicted supply …
India’s retail inflation is on a downward trajectory, with the print falling to a four-month low of 4.87% in October from the most recent high of 7.44% in July. While prices tend to decline in November and December following the arrival of kharif crops in the market, the adverse base “will somewhat restrict the downside to inflation for two months", …
Rising onion prices in India pose a greater risk to Prime Minister Narendra Modi’s government than a recent spike of 700% in tomatoes, forcing authorities take fresh steps to contain food inflation before key polls. “The government’s move on onions is preemptive in nature, as the price rise appears in line with seasonal trends for now,” said Rahul Bajoria, an …
