At the time of elections, the price of onion is increasing in the country and the leaders are worried. Politicians seem to be afraid of where the poor and middle class people will get angry. In Telangana, the polling date is approaching; the price of onion has reached Rs 70 to Rs 80 per Kilogram. Retailers who sold at the rate of four or five KGs per Rs 100 until recently are now worried that sales have decreased due to the increase in the rate.
Onion prices are on the rise many other states also. Metropolitan cities like Bangaluru, New Delhi, Chennai also seeing soar in the prices amid festive season, and traders says it may cross Rs 100 per KG soon. On October 1, onion price in Andhra Pradesh was Rs 30 per KG, but now it has crossed Rs 55. Rates rose by 38 percent within a week. Kurnool, Anantapur and Prakasam districts of the state are famous for onion cultivation. Since there has been no rain for some time, the irrigated crops have reduced the yields. High temperatures are also a factor. Onion cultivation in Kurnool area has decreased by 36000 acres as compared to last year. While ten trucks of onions were to be delivered daily to the markets, it has become difficult to get one or two loads.
As per central government data of present week suggests that the maximum retail price has surged to around Rs 70 per Kilogram, and this upward trend is expected to continue until December when the Kharif season crop becomes available in the market. In national level, price rises up to 58% in wholesale market, this spike going in the retail markets up to Rs 80 to Rs 100 as per the demand. Onion prices can vary from one region to another within India, and the extent of price increases may differ depending on local factors and conditions.
India is the World Leader in Onion Exports:
The cultivation area of onion in our country is very high as compared to the countries of the world. But because of the high yield, China occupies the first position by producing more despite having a smaller cultivation area than us. The third place is occupied by America one year and then by Egypt the next year. Both India and China are producing more than they need under normal circumstances. India exports ten percent of the total production. Government will regulate or ban exports when prices rise. In the meantime, the Narendra Modi government has also imposed restrictions on exports. The union government recently imposed a minimum export price (MEP) of 800 Dollar for Tonne (Rs 67 per KG) on Onion exports between 29 October and 31 December to ensure domestic availability. Decision of imposing floor price on exports was taken to ensure domestic availability amid rising prices.
Onion Politics are back in Election Time:
Onion prices have influenced politics for the past four decades. This is becoming a key narrative at election time. In the 1980 Lok Sabha elections, Congress leader Indira Gandhi brought forward onion price hike as an election issue. Later on many occasions the debate on onion prices is raging during election period. It is becoming common for the opposition to use it as a weapon. In 1998, the BJP government in Delhi lost because of onion prices.
Politicos adding spice for the ongoing elections campaign in Telangana, Madya Pradesh, Chhattisgarh, Rajasthan and Mizoram state assembly elections, by rising onion price issue.
Congress President Malikarjun Kharge also took a dig at the BJP-led Central government over rising onion prices. While sharing a cartoon on his X account, Kharge wrote in Hindi, "For past 9.5 years BJP has been mocking public outcry against rising inflation and high prices...every time on the issue of inflation, Modi government has made fun of people, in this way”.
Several Factors Impacting Onion Prices:
The increase in onion prices in India is a common occurrence and can be influenced by several factors. Onions are a staple in Indian cuisine and are consumed in various forms, making their prices a matter of concern for both consumers and policymakers.
Seasonal Factors: Onions are a seasonal crop, and their prices can fluctuate depending on the time of year. The supply of fresh onions may be limited during certain months, leading to increased prices.
Weather Conditions: Weather plays a significant role in onion cultivation. Excessive rainfall, drought, or unseasonal weather can damage onion crops and reduce yields, leading to a decrease in supply and higher prices.
Storage and Warehousing: Proper storage facilities are essential to prevent spoilage and ensure a steady supply of onions throughout the year. Inadequate storage and warehousing infrastructure can lead to price fluctuations.
Transportation Costs: The cost of transporting onions from the growing regions to various parts of the country can impact their prices. High transportation costs can result in higher prices for consumers.
Government Policies: Government interventions in onion markets, such as export bans or restrictions, can influence prices. These policies are often put in place to stabilize domestic markets and ensure adequate supply.
Market Speculation: Speculation by traders and hoarding of onions can also drive up prices. When traders anticipate a shortage, they may stockpile onions and sell them at higher prices later.
International Factors: Global factors, such as fluctuations in onion prices in other countries or changes in trade policies, can affect onion prices in India, especially if India relies on imports to meet its demand.
