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Short answer: No. Longer answer: see below. http://www.thehindubusinessline.com/opinion/are-high-vegetable-prices-here-to-stay-no/article5029369.ece http://ww
by taway2012 13y ago
Short answer: No.
Longer answer: see below.
http://www.thehindubusinessline.com/opinion/are-high-vegetable-prices-here-to-stay-no/article5029369.ece http://www.thehindubusinessline.com/opinion/are-high-vegetab...
"According to Government data, India’s onion output in 2012-13 at 16.65 million tonnes, wasn’t much below the record 17.51 million of the previous year. Also, the fact that prices at Lasalgaon, Maharashtra’s and Asia’s largest onion market, averaged Rs 8 to 8.50 a kg till mid-May shows the crop wasn’t bad. What, then, explains the same Lasalgaon prices now touching Rs 45/kg?
"The last time when wholesale prices rose so much — consumers paid Rs 100 then — was in early January 2011. But that was a year when crop in South India was hit, especially by floods in Andhra Pradesh. The country’s entire requirement had to, then, be met from stored Maharashtra onions, allowing the traders at Lasalgaon to make a killing. But this time round, no such production disruption has happened; the kharif crop from the South is yet to be harvested.
"It only points to the power of traders, who would have bought at Rs 8 in early-May and stored to create artificial scarcity after July — when crop arrivals stop and the festival season takes off with Ramzan/Id-ul-Fitr!
- revelation 13y agoGraph of onion production by year: http://www.wolframalpha.com/input/?i=plot+%5B%5B2003%2C+5750.50%5D%2C+%5B2004%2C+6995%5D%2C+%5B2005%2C+9432.46%5D%2C+%5B2006%2C+10847.21%5D%2C+%5B2007%2C+12157.18%5D%2C+%5B2008%2C+13564.53%5D%2C+%5B2009%2C+12158.70%5D%2C+%5B2010%2C+15117.75%5D%2C+%5B2011%2C+17511.10%5D%2C+%5B2012%2C+16817.02%5D%5D http://www.wolframalpha.com/input/?i=plot+%5B%5B2003%2C+5750... So production almost doubled since 2004. Data from: http://agriexchange.apeda.gov.in/India%20Production/India_Productions.aspx?hscode=07031010 http://agriexchange.apeda.gov.in/India%20Production/India_Pr... So presumably India should be flush with onions, unless I missed something and demand for onions also doubled. How could traders corner the markt in that situation?
- piyushpr134 13y agoThis is a seasonal issue. During the rains shelf life of Onions decreases as they start to sprout. So the onion stock is sold off in may, just before the monsoon. After May, monsoon rains start and they are heavy rains with lot of humidity. This leads to less onion being available. By the time we hit July, onion prices hit the roof. Then again by end of August/mid September, prices start softening. By the time next crop is ready (i.e. end of september) prices dive back to May levels of INR 8 per kg in the wholesale market.
- meepmorp 13y agoDoes this happen every year?
- piyushpr134 13y agowhenever it rains heavy during monsoon in Maharashtra.