Rising potato, onion and milk prices worry for Narendra Modi government

NEW DELHI: Rising prices of potato, pulses, onion and milk have been identified as one of the priority concerns for the Narendra Modi government. At a meeting chaired by the cabinet secretary last week before Modi took charge as Prime Minister, consumer affairs ministry was asked to keep track of prices of pulses and take necessary steps, including coordinating with state government to use storage facilities for onion, sources said.

Government officials said while the food inflation was moderate at 5.2% in April in comparison to 5.7% in March, the inflation in April last year was much less at 5.77%. They added that the food ministry had submitted the details of food grain stock till May 12. The wheat stock stood at 245.6 lakh tonnes in comparison to 237.5 lakh tonnes in May 2013.

But there are concerns of potato prices going up as the supply is set to fall in the next few months. Potato prices increased by Rs 4 and Rs 5 per kg in Delhi and Mumbai respectively in the last two months. The price rise was the steepest in Thiruvanthapuram (Rs 11 kg).

Even onion prices have increased across most of the cities in the last two months. The increase ranged between Rs 2 and Rs 7 per kg, according to the data available from price monitoring cell (PMC).

The data also show prices of some of the pulses going up between March 26 and May 26. Moongdal prices in Delhi recorded an increase by Rs 14 per kg while in Nagpur and Ahmedabad it increased by Rs 20.

Sources said at cabinet secretary's meeting, the consumer affairs secretary mentioned the rising prices of milk. PMC data show the maximum increase in milk price was Rs 6 per litre in Jaipur and Patna while it increased by Rs 4 per litre in Delhi.

On Tuesday, new food and consumer affairs minister Ram Vilas Paswan said checking food inflation will be the main focus for the new government.