Essay About Onion Prices And Political Sensitivity

Onion Prices in India
Decrease in supply
Fundal diseases purple anthracnose and purple blotch.
Severe weather, extended monsoon season
Increased spread of fungal diseases
40% damaged yield
Poor reserves due to lack of storage facilities
Increase in seasonal demand
Dec. Jan Wedding season.
Holiday Season; Christmas, nye, maka sankrati
Effect of speculation
Hoarding by intermediaries
Increased purchasing by consumers as concerns of supply became evident
Government Policy
Minimum export prices significantly higher than domestic market prices, therefore less incentive to sell locally
Slow response to increasing min. export prices after recognizing effects of decrease supply due to crop diseases.
Problem for Indian citizens of all social strata. Onions are a staple of Indian diet and increases in commodity prices effect all.
Political sensitivity to increase in onion prices as demonstrated in elections during the 80s, so politicians are affected.
Onion subsidies increased government spending and was onerous for taxpayers.
Government ensures base level compensation to farmers so that supply remains stable.
Government