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2010 Indian onion crisis
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May 2022
The Indian onion crisis of 2010 involved the dramatic rise in the cost of onions across markets in India. The crisis was caused by errant rainfall in the onion producing regions which led to a shortage of onion production. The crisis caused political tension in the country and was described as "a grave concern" by then Prime Minister Manmohan Singh.AFP En Inde, le prix de l'oignon peut faire perdre les élections http://www.liberation.fr/monde/01012309510-en-inde-le-prix-de-l-oignon-peut-faire-perdre-les-elections 3 January 2011 Libération 22 December 2010 28 September 2012 https://web.archive.org/web/20120928055852/http://www.liberation.fr/monde/01012309510-en-inde-le-prix-de-l-oignon-peut-faire-perdre-les-elections live
Background
Onions are considered an important ingredient of most Indian cooking, providing the pungent foundation for curries and other dishes. Onion prices have been an important political issue: they were regarded as the decisive factor in the 1998 state elections in Delhi and Rajasthan, and were responsible for bringing down the central government in 1980.Magnier Mark Indians in tears over skyrocketing onion prices https://www.latimes.com/archives/la-xpm-2010-dec-27-la-fg-1227-india-onions-20101227-story.html 3 January 2011 Los Angeles Times 27 December 2010 24 September 2017 https://web.archive.org/web/20170924174431/http://articles.latimes.com/2010/dec/27/world/la-fg-1227-india-onions-20101227 live India is the second largest onion producer in the world, after China.The political price of onions http://www.thehindu.com/opinion/editorial/article977100.ece 3 January 2011 The Hindu (Editorial) 25 December 2010 22 October 2012 https://web.archive.org/web/20121022113012/http://www.thehindu.com/opinion/editorial/article977100.ece dead
Forty-five percent of the onions produced in India come from the states of Maharashtra and Karnataka. In November 2010, unseasonal and excessive rainfall in onion-producing regions such as Nashik in Maharashtra delayed the arrival of onions in markets.Mishra Asit Ranjan Skyrocketing onion prices add to government's troubles http://www.livemint.com/2010/12/21103634/Skyrocketing-onion-prices-add.html 3 January 2011 LiveMint 21 December 2010 19 August 2011 https://web.archive.org/web/20110819115112/http://www.livemint.com/2010/12/21103634/Skyrocketing-onion-prices-add.html live In December, when fresh crop usually begins to arrive, onion shipments were reduced from 2000 to 3000 tons a day to 700-800 tons a day in New Delhi markets,Kazmin Amy India: politics of onions http://blogs.ft.com/beyond-brics/2010/12/21/india-politics-of-onions/ 9 January 2011 Financial Times 21 December 2010 22 January 2011 https://web.archive.org/web/20110122234506/http://blogs.ft.com/beyond-brics/2010/12/21/india-politics-of-onions/ live raising the price of onion from 35 yes to 88 yes per kg in the period of one week.Indian onions crisis: Custom duty slashed to zero https://www.bbc.co.uk/news/world-south-asia-12057398 3 January 2011 BBC World 22 December 2010 22 April 2019 https://web.archive.org/web/20190422013438/https://www.bbc.co.uk/news/world-south-asia-12057398 live The price on some online portals was significantly lower, about 30-40/kg.January 2015
Aftermath
Wary of historical precedent, Prime Minister Manmohan Singh and his government responded forcefully by banning onion exports, lowering import taxes and by getting in shipments of onions from neighbouring Pakistan.Onions, coconuts and the politics of taste in S.Asia https://www.dawn.com/news/593309/onions-coconuts-and-the-politics-of-taste-in-s-asia 3 January 2011 The Dawn 24 December 2010 27 December 2010 https://web.archive.org/web/20101227080354/http://www.dawn.com/2010/12/24/onions-coconuts-and-the-politics-of-taste-in-s-asia.html live In late December, following government restrictions on exports, wholesale onion prices went down to 50 yes per kg in metropolitan markets.Mehdudia Sujay Onion starts to cool as tomato soars http://www.thehindu.com/business/Economy/article977269.ece 3 January 2011 The Hindu 25 December 2010 28 December 2010 https://web.archive.org/web/20101228033944/http://www.thehindu.com/business/Economy/article977269.ece dead
Along with errant rainfall, hoarding, official incompetence and price-ramping by traders have also been blamed for the crisis. The Times of India, in a back-of-the-envelope calculation alleged that wholesale retailers and speculative traders in New Delhi charged a markup of over 135%, taking in profits of over 1000000 yes a day.Varma Subodh The great onion robbery: 135% mark-up from mandi to retail http://articles.timesofindia.indiatimes.com/2010-12-23/india/28214746_1_onion-trade-wholesale-traders-delhi-s-azadpur https://web.archive.org/web/20121104084416/http://articles.timesofindia.indiatimes.com/2010-12-23/india/28214746_1_onion-trade-wholesale-traders-delhi-s-azadpur dead 4 November 2012 3 January 2011 The Times of India 23 December 2010 The opposition Bharatiya Janata Party blamed the crisis on policy decision on exports and imports. Responding to a call from the opposition, 20,000 people demonstrated on the streets of New Delhi to protest the price rise and corruption in the government. The protesters included women and children wearing garlands of onions to symbolize inflation in the prices of basic commodities.La crise de l'oignon en Inde http://humanite.fr/27_12_2010-la-crise-de-loignon-en-inde-460875 3 January 2011 L'Humanité 27 December 2010 2 January 2011 https://web.archive.org/web/20110102205147/http://www.humanite.fr/27_12_2010-la-crise-de-loignon-en-inde-460875 live
In 2015 the retail prices of onions shot up again to INR 80/kg in Delhi.http://articles.economictimes.indiatimes.com/2015-08-17/news/65526025_1_onion-rate-stored-onions-onion-prices https://web.archive.org/web/20160305143758/http://articles.economictimes.indiatimes.com/2015-08-17/news/65526025_1_onion-rate-stored-onions-onion-prices 5 March 2016 17 August 2015 Onion prices go through the roof, retail at Rs 80/kg in Delhi The Economic Times 27 September 2015 dead In Pakistan onions were retailing for PKR 40-50/kg.http://www.geo.tv/article-196090-Onion-prices-shoot-up-after-IndiaBangladesh-place-import-orders Onion prices shoot up after India, Bangladesh place import orders 2 September 2015 AFP 27 September 2015 28 September 2015 https://web.archive.org/web/20150928065859/http://www.geo.tv/article-196090-Onion-prices-shoot-up-after-IndiaBangladesh-place-import-orders live
See also
2010 United States tomato shortage
References
Category:Economic history of India
Indian Onion Crisis, 2010
Category:Onions
Category:Agricultural marketing in India
Indian Onion Crisis, 2010
Category:Manmohan Singh administration
Category:History of agriculture in India
Category:Food politics
Category:Inflation