2. Agenda
 Overview
 Causes
 Implications
 Actions Taken

3. Introduction to Onion Market
 Overview of the onion crisis – 2010
 History Repeated after 1980

4. 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

5. 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

6. 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