An overwhelming 62% respondents to a survey conducted by India Today and Karvy Insights feel that soaring prices of onion and other food items are indicators of the bad state of the Indian economy. However, only 28% felt otherwise.
The poll called the Mood of the Nation (MOTN) surveyed 12,141 people across India.
Both retail inflation (CPI) and wholesale inflation (WPI) pointed towards rising prices in the month of December (2019), especially of food items.
The CPI was at almost a six-year high of 7.35% while, the WPI stood at 2.59% in December (an eight-month high). The high inflation numbers were driven by onion prices which soared by a whopping 455% in December, whereas, the prices of other vegetables went up by around 70% (in December).
Meanwhile, onion prices peaked to Rs 160 per kg in December 2019 but have come down to around Rs 60-70% per kg now. Fresh onion is available from January to May.
The government is also considering lifting the ban on exports of onion as fresh arrival of the commodity has started softening its prices in the domestic market.
In September 2019, the government banned the export of onion to increase availability of the commodity in the domestic market and contain rising prices. The government had also imposed stock limits on traders.
Retail onion prices had skyrocketed in Delhi and other parts of the country due to supply disruption from flood-affected states like Maharashtra.Also Read: Budget 2020: Date, timings, where to watch, expectations from Modi govt's most challenging Budget