Onion Crisis in India

The price of onion has skyrocketed in India and added to worries over food inflation at a time when the economy is facing deflation.

The price of onions are too expensive for most Indian families. Economists see this as a key indicator of economic stability and the opposite parties have seized on the issue wearing onion garlands at rallies and offering onions instead of gold as wedding gifts.

The onion crisis is piling pressure on Prime Minister, on above the large scale protest against the new citizenship bill that has raised concerns about his party's Hindu nationalist agenda and further alienated the country's 200 million Muslims.

In some regions of india the onion price have increased triple times. The government has tried to deal with the problem by selling onions at subsidized price in some of the states, halting exports and cracking down on hoarders.  

The onion crisis adds up to the economic crisis.The slowdown follows several major shocks brought on by Modi's government, including a massive demonetization meant to counter widespread tax evasion and corruption and the introduction of a goods and services tax. At present onion prices are hitting family budgets,restaurants and small vendors.

This has drastically affected the farmers.This has drastically affected farmers.This has drastically affected farmers.Many vendors have given up on selling onions due to the prices, and those still selling them ruin their major profits. In the southern India city of Bangalore, only a handful of vendors sold onions at a farmers market bustling with hundreds of people.

The price of onion in the retail market in the beginning of 2019 was between Rs 30 and Rs 40 per kg. However, by September end, the price started to increase. States like Gujarat, Madhya Pradesh, Karnataka, Maharashtra and West Bengal account for almost 90 per cent of onion production in the country.  Later, the price started to increase to touch Rs 145 in the first week of December.