Wholesale Price based inflation spikes to 3-month-high at 0.53% in March
The annual rate of inflation based on the all India Wholesale Price Index (WPI) number has risen marginally to 0.53 per cent for March 2024, the government said on Monday.
The price index of onions has shot up by around 50 per cent due to uneven distribution and supply in the wholesale markets across the country, following floods in major supplying states such as Maharashtra, Karnataka and Madhya Pradesh.
In Delhi’s Azadpur Mandi, the wholesale price of onion on Thursday was between Rs 30-46. While in Maharashtra’s Nashik, onion was being sold at Rs 50-55.
According to traders, the onion prices have gone up due to the fall in its stock which in turn has affected the supply to wholesale markets. Last week, in a bid to control the rising prices of onion, the government reduced the minimum export price of the vegetable to $850 per tonne.
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Sources believe the government’s move has reduced the possibilities of onion export.
Rajendra Sharma, a trader of Azadpur Mandi and President of the Onion Merchant Association, said the recent rains in the southern states must have caused damage to the onion crop due to which prices are constantly increasing. Another Nashik-based onion exporter said, “The entire nation is facing a shortage of onions. In such a scenario, exporting the vegetable is even more difficult.”
The trader said that currently, no wholesale market is receiving more than 1,000-1,500 onion-laden trucks, due to which the prices are going upwards.
(With input from agencies)
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