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Prices and Inflation 193

3. In Maharashtra, Gujarat, Haryana, Madhya Pradesh and Western Uttar Pradesh large-
scale storage of onions is taken in conventionally-designed structures. In other states,
the storage is taken only on small scale but now showing increasing trend after the
post-harvest technology and improved storage structures have been popularized by
NHRDF. Traditional storage practices result in substantial losses in stored onions,
hence use of improved storage structures as well as use of good storer varieties,
judicious use of fertilizers, timely irrigation and post-harvest technology are essential
to reduce the losses in stored onions (Operation Greens portal).
4. Develop an eVIN like tracking system: eVIN (electronic vaccine intelligence network)
aims to strengthen the evidence base for improved policy-making in vaccine delivery,
procurement and planning for new antigens in India. For onion supply we do not need
such a complicated system but a simple tracking system based on the principles of
eVIN might be adequate. This can help provide real-time information on onion stocks,
track storage temperature and moisture level and alert the authorities whenever any
parameter is breached.

5. Use of dehydrated onions that has longer shelf life should be promoted for buffer
stock purpose. Hydrated variety should be sold early.

CONCLUSION

5.36 During 2020-21, retail and wholesale inflation saw movements in the opposite directions.
While headline CPI-C inflation saw an increase compared to the previous year, WPI inflation
remained benign. Supply-side shocks especially owing to COVID-19 pandemic affected the
retail inflation with food articles contributing to the overall rise in inflation. The easing of
supply side restrictions, which saw inflation moderate in December 2020 are expected to
continue this easing. Government interventions to augment the supply of commodities as well
as to ensure the provision of essentials have likely softened the impact of the pandemic. Food
inflation has already eased in December reducing overall inflationary pressures. Going forward,
as food inflation eases further, overall inflation is expected to moderate further. On the other
hand, improving demand conditions are likely to keep WPI inflation in the positive territory
with improving pricing power for manufacturers.

CHAPTER AT A GLANCE

 Headline CPI inflation averaged 6.6 per cent in 2020-21 (Apr-Dec) and stood at 4.6 per cent in
December 2020, mainly driven by rise in food inflation, which has increased from 6.7 per cent
in 2019-20 to 9.1 per cent in 2020-21 (Apr-Dec), owing to build up in vegetable prices.

 At the global level, inflation remained benign on the back of subdued economic activity as a result
of COVID-19 outbreak and sharp fall in international crude oil prices in advanced economies.