The Indian Onion Crisis describes the dramatic rise in the cost of onions across markets in India. The crisis was caused by errant rainfall in the onion producing regions which led to a shortage of onion production. The crisis caused political tension in the country and was described as "a grave concern" by Prime Minister Manmohan Singh.[1]
Onions are considered an indispensable ingredient of most Indian cooking, providing the pungent foundation for a thousand different curries and other dishes. Onion prices have been an important political issue, and were regarded as the decisive factor in the 1998 state elections in Delhi and Rajasthan and were responsible for bringing down the central government in 1980.[2]
Forty-five percent onion produce in India comes from the states of Maharashtra and Karnataka. In November 2010, unseasonal rainfall in onion producing regions such as NashikinMaharashtra delayed the arrival of onions in markets.[3] In December, when fresh onion crop usually begins to arrive, the price of onion rose from ₹35 (42¢ US) to ₹88 (US$1.10) in the period of one week.[4]
Wary of historical precedent, Prime Minister Manmohan Singh and his government responded forcefully by banning onion exports, lowering import taxes and by getting in shipments of onions from neighbouring Pakistan.[5]
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