Articles by ecothrust at Technorati Headline Animator

Sunday, January 16, 2011

After Onions It Is Tomatoes In India !

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The vegetable prices in India still remain out of control as the Manmohan Singh Government fights the twin menace of corruption and inflation. Just as fresh crops from Nasik arrived following the import of Chinese onions   to ease onion prices, the prices of  tomato shot up. This weekend apparently for no reason it galloped past the onion price to an all time high of Rs 80 per kg almost 4 times the price it was last winter.



Like onions, tomatoes are a staple ingredient to make the famous Indian curry that is part of the daily diet of most Indians especially in the hotels across India. A  staple Indian curry consists of  6 to8 (half a kg ) onions and 4 to 6 tomatoes (300 grams) for the average north Indian household every day. Now with both items spiked the food inflation which is expected to cross 20% in the review period of 25th January is likely to further go up.

Hyper inflationary trends have already restricted growth in India's industrial sector. It is possible that the trends set in permanently this  oncoming summer and affect India's long term growth. One of the things that is responsible for this rampant rise is the multiple taxation of  transport vehicles across Indian roads which is both high and disruptive as corruption ridden local Governments and municipalities enforce order in India's chaotic transport system. The same needs to be set in order so that agricultural commodities move freely to the demand centers.


 

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