New Delhi, June 30
The Centre’s efforts to keep a check on food prices, particularly onions, do not seem to be having the desired impact. Despite the imposition of the minimum export price (MEP) to keep a check on domestic rates, reports emanating from Lasalgaon — India’s largest wholesale market for the edible bulb — say that onion prices have shot up 40 per cent in the last two weeks.

The impact is being felt across the country in varying degrees. The IMD has predicted a below-normal monsoon this year, which is posing a threat to all kharif crops- paddy, sugarcane and maize and of course vegetables, including onion and potatoes.

Experts say prices have increased due to speculation amid anticipation of weak monsoon. Around two-thirds of the country’s agricultural land is dependent on the monsoon rains.

All fingers are crossed for the expected revival of the monsoon in the first week of July. If it falls short of expectations, the first person under attack would be Prime Minister Narendra Modi -who promised India “achche din” if his government came to power.

The prospects of deficient rains and impact of Iraq crisis on commodity and oil markets have already started aggravating the price situation in India. “All these factors are out of his (Modi) control but how many people will understand it,” rues a senior BJP leader.

As Opposition parties gear up to corner Modi in the coming budget session, containing inflation is now his top priority. The first impact of increase in petrol prices will be on commodities across the boards. Experts say onion rates are only one of the indicators.

Reports say onion prices in the last one month jumped by 90 per cent to Rs 18.50 per kg as against Rs 9.75 per kg on May 30. This implies that Modi’s advisory to the states to crack down on hoarders efficiently is not working.