Indian onions’ eye-watering price

Sorting onions at a vegetable market in Delhi on February 2007Onion prices have helped topple Indian state governments in the past
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India’s government has banned the export of onions after the vegetable doubled in price in the past week.

The rise has been blamed on unusually heavy rains in growing areas, as well as on hoarders and speculators.

Prices have jumped to 70 rupees ($1.55; £0.99) per kg from 35 rupees last week. The ban is until 15 January and India is importing onions to ease shortages.

Onions are a basic ingredient in many Indian dishes – soaring prices in the past have sparked popular unrest.

In 1998 Delhi’s chief minister was forced to resign when he suggested poor people should give up onions when the price became too high.

The rising cost of food and other basic commodities has been a growing source of concern for Indians in recent months.

Onion crops have been damaged by unseasonal rains in the bulk producing western states of Maharashtra and Gujarat and in southern states.

Agriculture Minister Sharad Pawar told reporters in Delhi on Tuesday that the situation would be back to normal in two to three weeks.

Imports of onions have begun arriving in India from its neighbour and rival Pakistan, officials say.

As many as 13 truckloads carrying dozens of tonnes of onions had crossed the border at Wagah to supply northern Indian markets, a senior customs official in Amritsar told the Press Trust of India.

Inflation has helped push Pakistani onions to similar prices as those in India.

Food price inflation in India has retreated over recent months, but remains at a high of nearly 10%, a worry for the ruling Congress party ahead of a number of important state elections next year.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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