Monsoon rains delay harvests and accelerate India’s food inflation

Onion prices in India may extend a record rally as heavy monsoon rains delay harvests and worsen a shortage, potentially accelerating food inflation in Asia’s third-largest economy.

Retail prices of the vegetable used in everything from soups to curries soared to 70 rupees (€0.84) a kilogramme in New Delhi this week from 20 rupees three months earlier, according to the Consumer Affairs Ministry.

Prices may increase further as farmers are unable to pick the crop due to monsoon rains, said CB Holkar, a director at the National Agricultural Co-operative Marketing Federation of India.