Retail prices of onions in New Delhi have, however, been hovering at the same level of Rs 40 per kg for the past four to five days, despite the sharp decline in wholesale rates.

That food prices have spiralled out of control over the last 15 months shows inflation was not a priority for the UPA government. The onset of the New Year shook the government out of its stupor.

Following Tuesday's high-level meeting called by the Prime Minister, Pranab Mukherjee met Montek Singh Ahluwalia, Sharad Pawar and K M Chandrasekhar on the issue.

The meeting headed by Manmohan Singh and attended by Pranab Mukherjee, P Chidambaram, Sharad Pawar and Montek Singh Ahluwalia, remained inconclusive.

PM's meeting is expected to be attended by Finance Minister Pranab Mukherjee, Planning Commission Dy Chairman Montek Singh Ahluwalia and Sharad Pawar.

Wholesale price of onions declined by Rs 3/kg to Rs 40-47 in Delhi, Mumbai, Kolkata and Chennai on Sunday, according to reports from these centres.

Finance Minister Pranab Mukherjee says the government was committed to take all steps to moderate price rise.

Food inflation surges to 18.32 per cent for the week ended Dec 25 on the back of a sharp increase in the prices of onions, green vegetables, milk, fruits, eggs and meat.

The figure rose to 14.44 per cent from 12.13 per cent in the previous week. This is the fifth consecutive week when the rate of price rise of food items has increased.

Prices also rose in Pimpalgaon, even as an official team is in Nashik to assess crop damage due to unseasonal rains during November-December.

An Empowered Group of Ministers on Food is scheduled to meet to review prices of essential commodities and also discuss imposition of import duty on sugar.

Besides Nafed, Mother Dairy, Kendriya Bhandar and the National Consumer Co-operative Federation (NCCF) were selling onions at Rs 40 per kg through their retail outlets.

Food inflation rose to 12.13 per cent for the week ended December 11, as prices of onion, milk and vegetables rose. It returned to the double-digits after four weeks.

Food inflation registered a sharp increase for the week ended December 11, from 9.46 per cent in the previous week, to enter double-digits for the first time since November 13.

Onion prices have soared to Rs 70-85 per kg in Delhi and other major cities, from Rs 35-40 per kg last week, due to damage of onion crops because of rains in south India.

With wholesale rates at Nashik in Maharashtra crossing over Rs 70, there are fears the retail selling price in Delhi and elsewhere may edge towards Rs 100 a kg.

Managing Director Sanjeev Chopra, who had chaired the meeting of Price Fixation Advisory Committee on the commodity, hoped the steps will bring down the prices.

The prices, which were already high at Rs 35-40 a kg, rose astronomically since Sunday when it skyrocketed to Rs 60-70 a kg in the retail outlets in Delhi and nearby areas.

Price of food items like pulses and vegetables declined during the week ended November 13 on improved availability after the end of the monsoon season.

Psephology is a difficult job at the best of times and in the most homogenous of states. In India— with all casteist, religious, ethnic and regional fault lines—it is doubly so.