India urges Pakistan to resume onion exports as prices surge

India is trying to persuade Pakistan to resume full exports of onions, the foreign minister said yesterday.

The move came as food price inflation rocked Asia's third-largest economy, fuelling anger against the ruling coalition.

Discontent over food price inflation has been a major headache for prime minister Manmohan Singh who is struggling with corruption charges against his government, after an impressive election victory in 2009.

Pakistan banned overland exports of onions to India on 4 January with traders saying they feared shortages at home. "We have initiated talks and before not too long we are hopeful we will find a solution to this, easing pressure within our country for onions," India's foreign minister SM Krishna said in New Delhi.

The price of onions, a staple for Indian families who use them in almost all dishes, rose more than 23 per cent over the week to 25 December.

Such price rises often spark protests and can dislodge state governments. Unseasonal rains have been blamed for pushing up prices of vegetables such as onions and tomatoes, but some point to poor agricultural productivity and transport after years of low investment.

The UN Food and Agriculture Organisation says food prices hit a record high last month, above 2008 levels when riots broke out in Egypt, Cameroon and Haiti.