The retail inflation in India, according to some reports, may go beyond the RBI limit of 6 per cent in the time to come. These developments come at a time when onion prices across the country are surging, as per various reports.
Onion Prices Jump
Onion, which is a staple and, in fact, an essential component of a regular Indian household, is said to be shaking up not only family budgets but also dietary preferences. The price of this vegetable is at a 5-year high.
According to reports, in major metro cities like Mumbai and Delhi, the price of 1 kilogram of onion is inching closer to Rs 100.
In the all-important wholesale market, the price bracket has surged from Rs 40-60 per kilogram to Rs 60-70 per kilogram.
At the current progression, one cannot rule out onions touching the 'feared' Rs 100 per kilogram mark.
The retail inflation in India, according to some reports, may go beyond the RBI limit of 6 per cent in the time to come. | Representational Image/Pixabay
Onions Of Mumbai
In the commercial capital of Mumbai, according to reports from ANI, onions are being sold at the rate of Rs 80 per kilogram.
Meanwhile, in the national capital of Delhi, the wholesale prices have also gone up. This increase in price, according to sellers will eventually be passed onto retail customers, as it is hard to keep up with.
A factor that is being attributed to this happening is the rise in export demand. |
Reasons For Surge
This recent surge in onion prices is being attributed to the poor quality of produce obtained. The below-par quality of the Kharif crop in major states like Maharashtra, Rajasthan and Karnataka has resulted in increased demand for the older, more expensive crop. Another factor that is being attributed to this happening is the rise in export demand.
Rupee at All-Time Low
Interestingly, this also comes at a time when the value of the Indian rupee has only dimished further. The Indian Rupee has hit an all-time low at 84.38 against the US Dollar. This affects the purchasing power of regular Indian customers, thereby stoking fears of inflation in the coming weeks and months.
