India
EXPORT ONION CHEAPLY TO IMPORT LATER AT HIGH COST
GOVERNMENT PLAYING IN THE HANDS OF TRADE
2015-08-24 11:50
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The onion trade has, once again, taken the government for a ride. The trade was allowed to export well over a million tones of onion through 2014-15 and the first quarter of this financial year. The government, as usual, ignored the production and availability of onion and met forecast of a weak monsoon in May. The Mumbai-market controlled onion trade did what it had been doing for decades – export cheaply during the season and import at high cost at the season-end to maximize profit on both. Few governments, not even the one led by the late Indira Gandhi, had the political courage and will to control, if not stop altogether, onion export and import to stabilize the trade for the benefit of the common man. High onion and potato prices had caused election downfall of ruling parties.