It’s that time again when people start crying foul over everything left, right and centre. This is when the common man can bear the brunt no longer as it starts to hit him where it hurts the most-the wallet.
The onion is back in the news again and for the wrong reasons; actually the only time this vegetable gets attention is for the wrong reasons. Onion, or in other words, known as the bulb, is a decent looking vegetable produce used in every home, across every income strata as an indispensible item of cooking. Chopped, finely grated or smashed---one would hardly find a household that doesn’t have its daily dose of onions (although there are exceptions). Its pungent smell brings out the rich flavour in any dish. History is a witness to the role this gentle, decent vegetable played in bringing out the best served dishes by “khansamas” for the “Nawabs”.
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However, the present situation presents a sorry state of affairs. Onion prices have shot up significantly in the past few weeks, drawing the wrath and ire of the common man.
Firstly, few question- why is it so important to us? Out of all the goods and services, why do we pick up this humble onion? What is the connection we share with the prices of onion skyrocketing among all the vegetables we consume? There has to be a rational to it.
Indian cultural history is abounding with examples of idols-idols performing good deeds, idols restoring the balance on this planet, idols banishing the evil, etc. Thus we like to associate ourselves with certain idols-which we preach, follow and practice. In the same manner, for the common man, the onion represents the undying economic evil, inflation, a necessary one though. People may not remember the exact data on inflation but are well aware of the prices they pay in the market. As an individual, I take decisions on the information perceivable and easily processed. As a consumer, I’m constantly affected by prices and prices of essential items are the most sensitive. What is interesting to note is that, no matter to what extent the prices rise, there is a certain minimum quantity of essential items we will certainly consume. In that sense, they’re income inelastic-least responsive to changes in income levels.
However, they are sensitive to our buying power. We may be consuming a minimum average amount of onions, but the surge in its price makes us realise that everything else is becoming dearer. We’re spending more from our disposable income on the same basket of goods and services, and that hurts us the most.
India is the second largest onion growing country in the world. Indian onions are famous for their pungency and are available round the year. Indian onions have two crop cycles, first harvesting starts in November to January and the second harvesting from January to May.
The Major Onion producing states area Maharashtra, Karnataka, Madhya Pradesh, Gujarat, Bihar, Andhra Pradesh, Rajasthan, Haryana and Tamil Nadu. Maharashtra ranks first in Onion production with a share of 32.20 per cent.
There is a lot of demand of Indian Onion in the world; the country has exported 1.64 Million metric tons of onion worth Rs. 19.29 billion during the year 2012-13.
Malaysia, Bangladesh, United Arab Emirates, Sri Lanka, Indonesia, Singapore and Kuwait are the major export destinations.
Currently, onion prices are witnessing sudden surge in retail prices even though supplies are abundant in the major markets of Bangalore, Kolkata and Pune.
According to sources, fresh arrivals of the bulb are getting spoiled due to incessant rains in regions of Maharashtra. More than half of the supplies are turning out to be spoiled.
Rains have damaged about 40 per cent of the total arrivals in the wholesale market.
With the second sowing to start in November, prices of the current supplies will remain elevated.
Arrivals average around 60-65 trucks of 300 bags in the Onion market of Vashi mandi. For the past week, arrivals have been around 80 trucks.
Although offloads of stocks remains high, prices are ruling at Rs 35-50 a kg on account of damage. Wholesale prices are trading in the range of Rs 35-50 a kilo while retail prices are likely to go up-to Rs 70 per kilo in the next few weeks.
Retail prices are expected to rise ahead as supplies in at end-market remains short of demand.
The humble onion will not be so humble anymore.
