The rise in the prices of onion has been attributed to low yields due to unseasonal rains. It seems middlemen have exploited the situation to their benefit. They have hoarded huge quantities of onion and created an artificial demand-supply mismatch.
The government acts only when things go out of control. Was it waiting for the onion prices to hit the roof to take corrective action? Was it not aware that there was a shortfall of onion yields due to untimely rains in Maharashtra and that it would give hoarders a chance to exploit the situation?
With onion prices skyrocketing, the usual blame game among political parties has begun. By blaming the price rise on unseasonal rain or hoarding, the government cannot get away. It should improve storage facilities on a war footing.
Deendayal M. Lulla,
One wonders whether the government has a credible mechanism to assess in advance the supply and demand of essential commodities. The Nasik-based National Horticulture Research and Development Foundation had hinted about the likely price rise as early as May. People need to know what steps the government took to ward off the crisis.