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Rising onion crisis to be a new headache for the NDA govt

| @indiablooms | Nov 28, 2019, at 05:44 pm

New Delhi/IBNS: The looming Onion crisis is going to throw a major challenge to Narendra Modi-led NDA government, already reeling under the grip of economic slow down, as the prices of the kitchen-staple have increased exponentially across the country.

According to reports, onion is selling in the retail market at Rs 90-100 per kg, posing difficulties for households and food businesses.

The onion crisis is nothing new in India. In 2013. the price of the bulb crop had shot up to Rs 100 per kg.

Used widely across by almost all Indian cuisines, the exorbitant onion prices may have far-reaching effects and cost the current dispensation dearly. It is believed to be one of the main causes of power-shift in the Centre in 2014.

In October, the government had imposed stock limit on traders and banned export to arrest the shooting onion prices. It had reduced Minimum Export prices to $850 per tonne making it almost impossible for the traders to export onions. The ban was imposed to stop the exports altogether.

In a latest move, the government has decided to continue with the stock limit restriction.

Despite the efforts, the price of onions have continued to move up. This rise is being attributed to untimely rainfall in onion producing states like Maharashtra, Gujrat and Karnataka.

While the consumers are forced to cut down or completely do away with their onion consumption, the traders are likely to be left with huge stocks of unsold inventory, which can further disrupt the onion trade in the country.

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