The Onion Crisis raises certain pertinent questions.
Government says Onion prices have hit the roof due to hoarding. If that were the case, why have we not heard a single instance of Government Authorities across India raiding one wholesaler who is hoarding, releasing the hoarded onion and taking punitive action against the hoarder? It is said that wholesalers are buying onions at Rs 30 and the customer was paying above Rs 80 per kg.
The Government claims that the heavy rains in october and november affected the crops. For the sake of argument, let us concede this. But is it not logical to assume that Onion prices will rise as a consequence? Then, why were the exports banned or import duty reduced much earlier? Why was the Government not pro active but reacted only after the media started screaming?
It is not that the Onion production in the country has been showing a decline. During the past two years, the Onion production has gone up by more than 60% but the prices, even at the wholesale level, has increased by a whopping 300%. Though increased in exports can be attributed as a probable cause, this is not as much as it is to justify the phenomenal jump in prices.
There is obviously a lobby, involving politicians, bureaucrats and traders that is systemmatically looting the country. Even a short term crisis in any one product means hundreds of crored in profit for this lobby. With a spineless Government looking the other way, the common man is in for tough times.
