About 250 traders on Monday began a two-day boycott of one of India''s largest onion markets in protest at raids on warehouses to prevent stockpiling, as prices of the cooking staple soar. Traders in Nashik, about 160 kilometres (100 miles) north-east of Mumbai, said they were also staying away from the market because the state government ordered them not to sell onions for over 40 rupees (86 US cents) per kilogramme.
Food inflation in India surged to a five-month high of nearly 19 percent in the week ending December 25. The cost of onions peaked at 80-85 rupees per kilogramme last month, before falling to about 70 rupees, after unseasonal heavy rains. The vegetable had been selling for about 20-25 rupees. The Nashik District Onion Traders Association said its members had been buying onions at 30-45 rupees per kilogramme from the state-run Agricultural Produce Marketing Committee and would incur losses if they implemented the directive.
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