Managing onion shortage without tears
The idea of government agencies buying onion from Pakistan is best shelved. Market forces will do a better job. The Indian Government is aware that its intervention in correcting prices of perishable commodities such as onion will not be effective. The Prime Minister and the Agriculture Minister have said so. The supply-demand gap in onions has arisen because of poor production in last year’s kharif (weak monsoon in 2012) and rabi (poor moisture) crops in Maharashtra, Rajasthan, Gujarat, Andhra Pradesh and other states.
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