CCI orders probe into cartelisation

onions New Delhi: Competition watchdog CCI on Thursday ordered a probe into possible cartelisation by onion traders that might have led to a spike in prices of the essential commodity.The commission has held many deliberations to study the possibility of cartelisation by onion traders and prima facie there appears to be a case.So,we have taken a suo moto action in carrying out the probe, an official said.

Pak bans onion export via land route

Chandigarh: Pakistan has imposed a complete ban on export of onions to India via the Wagah-Attari land route,a development which may hit the Centres efforts to rein in the bulbs skyrocketing prices in India.Pakistan government has banned the supply of onion to India via land route, customs department (Amritsar ) deputy commissioner R K Duggal said on Thursday.He added that Pakistan authorities did not allow any truck to bring in onions.
Local traders explained the ban as a measure to prevent any spiralling hike in bulb prices in Pakistan.The sudden export ban has hit traders of both countries.Indian importers claim that Pakistan did not even allow the supply of 1,500 tonnes of contracted orders of onion.Almost 1,500 tonnes of onion was yet to be supplied to us but Pakistan government has not allowed local suppliers to fulfil their trade obligation, said Amritsars vegetable trader Anil Mehra.TNN

Theres fire raging on the price front.On Thursday,government data only confirmed the pain every household has been suffering for the past few months when it stated that food inflation was at a frightening 18.32%.
Whats destroying the household budget is not food prices alone;prices across the board are rising.Oil,property,insurance rates,fridges,washing machines,air-conditioners,soaps,hair colour,insect repellents,air tickets,milk products,eating outyou name it,and its price is up.In the poorer strata of society,many things are off the purchase list,and for many in the middle class,planned purchases have been deferred.
The government,worried about the political cost of this unchecked inflation,has tried several things from imports to crackdown on hoarders,but it hasnt really worked so far.Now it has asked states to remove all bottlenecks in the supply chain to help bring down food prices.Will that work No ones betting on it.
The spiral in food price inflation to 18.32% in the week ending December 25 has been largely driven by prices of onion,vegetables,eggs,meat,fish and milk.The year-on-year increase in onion prices stood at 82.47% and vegetable prices at 58.85%.The increase in food inflation was the highest since July.
Economists said high food prices will persist for some time unless supplies improve.The hike in vegetable prices is,however,puzzling.There is usually a high supply of vegetables in winter and it pushes down prices.But this year the trend is quite the opposite-food inflation for the week ending December 25 has more than doubled from the November 20 level of 8.6%.

Times of India. 7/1/2011