After Tomato Makes Pockets Bleed, Onion Inflation To Bring Tears Next?

Onion supplies are tightening in some major markets and the kitchen staple could soon see an inflationary spell due an annual lean season when stocks dip, wholesalers and analysts have said.

- Zia Haq

{INFLATIONARY SPELL PREDICTED}

If that happens, it will hurt household budgets, already pinched by the steep rise in the price of tomato, retailing for upwards of ₹200 a kg in most cities.

Unlike in tomatoes or most greens, whose elevated prices have hit households, in the case of onions, the government maintains nearly 250,000 tonne of reserves, which it releases to markets when supplies bottom out.

Yet, one characteristic of the base ingredient of most Indian dishes is price volatility. And once onion inflation, as a phenomenon, sets in, it takes considerable time to dissipate, trends show.