Yeah an asset is said to be in bull market once its price rises by more than 20%. And our humble onion locally “kanda” to us has risen 3 – 4x in a matter of months.
With the `superman` mohan government is blaming hoarders , speculators etc. Well, our PM superman mohan might not even be aware considering his frequent foreign trips.
Onion is as essential to an indian meal as say ghosts are essential to make ramsay movie complete. Both north & south indian meals have to have it. It is primarily produced in Maharashtra & Karnataka during rabi ( i.e the harvest happens around April & May). So it needs to be marketed to cater to demand until the next crop arrive. So at around September, onion stock could be drawn down leading to demand – supply mismatches leading to price rises.
So after it is established that production is seasonal and demand is all year round, efforts to be made to build storage facilities, but with it missing you are exposed to the market forces. With the government not having done, its trying to pin blame on hoarders, the evil hoarders.
May be the government underestimates the power of this onion inflation or may be it has just given up like so many other instances ( latter seems true)Food inflation has been india` s curse. With the government having failed in its duty to provide long term solution prices ( onion now may be some other veggie later) are set to rise. Until some drastic steps are undertaken, have uthappa instead of the onion variety