As two BJP-ruled sates- Haryana and Maharashtra go to the polls on October 21, union govt went overdrive to arrest the spiraling prices as saffron party didn't want to face voters' backless. In 1998, the incumbent Bharatiya Janata Party-led government in Delhi lost the assembly election because of sky-rocketing onion prices. Onion is a common base ingredient of most Indian dishes and as such widely consumed. Its spartan diet of the poorest as they often eat raw onion, along with chapatis
So "once bitten, twice shy", Modi govt moved fast and immediately banned export of onion. Perhaps, govt had anticipated the crisis in view of heavy rain and flooding. On September 13, it had put the countrywide stock limit of 100 quintals per retailer and 500 quintals per wholesaler, imposed directly by the central govt , is aimed at ending the hoarding of onions. Earlier, on September 3, the government had set the minimum export price for onions at $850 (freight on board) per tonne, but exports had continued at a reduced level.
Country is witnessing a familiar pattern in onion-price spirals usually at this time of the year. At times, prices of onion crash. Remember, when in the first half of 2017, wholesale onion prices plunged, farmers in Maharashtra and Madhya Pradesh, came on road and agitating cultivators were fatally shot by the police. And when in second half of that year, government intervened in the markets to buy out excess stocks, prices started rising.
I remember, some tears ago, how Congressmen used to blame BJP supporter traders to manipulate the prices but did nothing to stem the rot, The harsh reality is that onion trade in the country suffers from price volatility. It is caused mainly because of supply-disrupting factors like extreme weather, high losses from inadequate or improper storage or frequently shifting production levels. All we need is to remove these irritants.