Agenda Overview Causes Implications Actions Taken
Introduction to Onion Market Overview of the onion crisis – 2010 History Repeated after 1980
Causes In November, export price was cut down to $375 per  ton by $50, expecting better production until Feb Unpredictab...
Implications Due to drop in export prices in Nov, global demand for  onions increased Unfortunately due to damaged crops...
Action Taken Govt. stopped the issue of new certificates of export Min. export price was increased from $525 per tonne t...
Onion Crisis 2010
Onion Crisis 2010
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Onion Crisis 2010

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  • Indian Meteorological Department predicted the erratic and untimely rainfall using sophisticated forcasting system. Armed by this forcast, the High & Mighty and Powerful, issued some 1100 export licences and reduced the export price. Even though massive crop damage due to unseasonal rains, onions were being exported, and price skyrocketed. The autorities then, made import of onion tax-free and export price extremely high. Next the traders, imported the onion exported earlier from neighbouring countries, at much higher prices and made windfall profits..
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Onion Crisis 2010

  1. 1. Agenda Overview Causes Implications Actions Taken
  2. 2. Introduction to Onion Market Overview of the onion crisis – 2010 History Repeated after 1980
  3. 3. Causes In November, export price was cut down to $375 per ton by $50, expecting better production until Feb Unpredictable rainfall in Maharashtra, Gujarat & Karnataka, which resulted in destruction of crops Exports to Sri Lanka, Dubai & Bangladesh were continued despite the shortage of onions in domestic market Due to shortage, traders delayed the delivery of onions to north & north-eastern markets, increasing the prices further
  4. 4. Implications Due to drop in export prices in Nov, global demand for onions increased Unfortunately due to damaged crops, supply of onions decreased dramatically, from 2000-3000 ton per day to 800-1000 ton daily The prices had increased due to crops damage & reached Rs. 30-40 per kg Prices soared to Rs. 80-85 per kg when onions could not reach New Delhi & Jaipur markets on time
  5. 5. Action Taken Govt. stopped the issue of new certificates of export Min. export price was increased from $525 per tonne to $1200 per ton Govt. asked the state agencies to provide onion to consumers at wholesale price Customs duty was slashed down to 0% to import onions from Pakistan

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