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Wholesale Food Inflation rises

New Delhi, Aug 14 (): Inflation of food items especially in the vegetables (includes onions), rice and cereals stood at 5.79% as per the Wholesale Price Index(WPI) . This is the second consecutive month that inflation has shot up.

In June it was 4.86%. The double-digit increase in prices of food articles, mainly onion has pushed the WPI. The inflation last year June was 7.52% while this year it came down to 4.86%. The wholesale prices of food items has shot up by 11.91%.

The WPI accounts for 14.34 % of the food items among the total articles that it covers. In June, the share of food articles was only 9.74 per cent. This is the third month that inflation in the food articles category rose.

Prices of onion shot up by 145 per cent in July and in June it had risen by 114 per cent compared to the same period last year. In June, the vegetable price increase was 16.47% and in July, it shot up 46.59%.

Manufactured items registered a marginal rise from 2.75% in June to 2.81 per cent in July. Non-food articles’ price declined from 7.57% registered in June to 5.51% in July. Oilseeds, fibre and minerals are termed non-food items. In June, the price of rice went up 19.11% and in July it increased by 21.15%. Cereal prices went up by 17.18 in June and in July by 17.66%. As per provisional estimates, the earlier figure of 4.70% inflation was revised to 4.58%.

The agriculture ministry and commerce minister K V Thomas along with finance ministry officials are meeting today to discuss ways to bring down onion prices. Maharashtra Government has asked farmers to release 600,000 tonnes of onion into the market. Maha and Karnataka account for 80% of the onion supplies.

Heavy rains have delayed the movement of the vegetable. In 2012 April till July India exported 400,000 tonnes. Ships from Karachi and China are bound to reach Indian ports with onions.

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