The solution to India’s onion price inflation is an obvious one
Now that BARC has developed a storage system enabling safe storage of onions for as long as six months Union Govt. can procure onions directly through FCI and State agencies from the farmers guaranteeing them a MSP as is done for wheat and rice. Govt. can keep releasing the stock in the market in case price is jacked up by hoarders. This will give a fair price to the farmers at their door steps and keep the price under check. For big cities like Delhi, Bombay,Kolkotta, Banglore etc silos with appropriate capacities can be built up to meet the demand of the consumers. Govt. should also fix an upper price band to protect the consumers from the greedy traders. more
If Modiji follows his policy of less government, then things will take care of itself. The problem is due to licensing of trading essential commodities. Is there any effect on prices by the futures and options of commodity trading in the stock market on the prices of onion and potatoes? more
Traditional methods are available for the storage of onion in open space itself. The problems farmers do not have the financial strength to store and sell later. Banks shall advance some loan based on these stocks, so that farmers can sell at an opportune time more
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By N.S. Venkataraman
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