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To fight against the popular dissatisfaction engendered by soaring prices, India will import onions for the first time since 2011.

Prices of onion has almost quadrupled in three months. The price jump threatens to trigger a violent reaction against the incumbent Prime Minister, before the elections of the next year. To fight against this inflation, the country will import onions. The demand is around 300,000 tonnes of onions from suppliers in China, Iran, Egypt and Pakistan.

The onion prices will remain high until the end of next month, expected date of harvest in the state of Maharashtra, the largest producer of the nation. The 2012-2013 Indian production amounted to 16.65 million tons, decreased by 4.8% compared to the previous year.

source : bloomberg com