Literature Review On The Current Rise in The Price Of Onions
The prices of onions have currently risen across the world, unlike the previous years. This sudden rise in the prices of onions is because there has been a low supply of onions into the various markets across the world. Previously, the prices of onions were fair. And as well, the supply was consistent. As per now the prices of onions have so far risen beyond the expectations of the consumer and these could have been attributed by the current shortage in the onions production by the farmers across the world.
The current study in India, for instance, is because of the heavy monsoon that has damaged the crops. This has increased the prices because the product is less than average production. The situation is though expected to remain the same for a month or so according to the current weather and the level of produce that reaches the markets from the farmers. For three consecutive years, farmers in India produced less or no onions due to bad weather. The farmers, as the moment, claim that the current price is a compensation for the past three-year loss. On average, the Indian farmers produced around six metric tonnes and were at an average rate of 15 per kg to the customers. In the year 2015, there was a severe drought and unreliable rainfall, which led to the farmers producing only 3.4 metric tonnes, which reached the market. It, therefore, caused the price to go up by more Rs 44 per 15 kg. in the year 2016, there was a decline in the prices of onions but is started rising again from 2017 up to date. Currently, there has been a deficit of nearly 40% in the supply of onions, thus not coping with the demand by the customers and resulting in higher prices.
Secondly, the prices of onions have as well risen due to flooding in onion producing states such as Karnataka, Maharashtra, and Telangana. The heavy rainfall locked down the production of onions lately in these states due to very wet conditions in the fields. The heavy rains which rained doubling the normal rains, for instance in Maharashtra, Tarnatka and Telangana the crops were damaged nearly of the cultivated areas. Therefore, the farmers were unable to harvest their crops from the states that were affected by the heavy rainfall. This was practically impossible because the crops were submerged under the rainwater. This fact has in turn led to the rise in the prices of onions. Lastly the prices of onion have risen also because the kharif crop fell short by 35 percent, (Ram Vilas Paswan). The kharif crop was also affected by the heavy rainfall resulting in the decline of its produce and in turn giving room for the consumers to use the available crops which are onions as a substitute. In addition the onion crop being the only crop available for the customers in the market the farmers took the advantage of raising the prices of onions since there was no crop to compete with the onion in terms of the customer’s preference.
In conclusion, the prices of the onions rose mainly because of the change in weather patterns resulting in the decline of the production of onions to the market. The high demand and the low produce therefore fueled the rise in the prices of onions across the world.
Reference
http//m.economictimes.com
https://economictimes.indiatimes.com