The Mystery behind rising onion prices. Let’s do some calculations – 1. India annual onion production ~ 16 Million Tonnes 2. Maharashtra has the largest share – 27%, i.e. 4.5 Million Tonnes 3. Of the 3-4 seasons onion is grown, the production is stored and released uniformly each month. 4. So Maharashtra releases 0.38 Million Tonnes per month 5. Maharashtra released 40% less onions to market in June – July 2013, balance being hoarded by the traders. Times of India, 17/08/13 6. So Onion released by Maharashtra in June – July 2013 = 0.23 Million Tonnes 7. Price demanded by traders was Rs. 50/kg as against normal Rs. 10/Kg. Times of India, 17/08/13 8. So in June – July 2013, in one month itself, Traders made a cool profit of Rs. 910 Cr!! 9. No let’s come to the politics behind it… 10. In Maharashtra, almost all the onion is grown in Nasik region and one man, a popular leader, Chairman of all lucrative cricket boards controls all such trades and traders. 11. Considering he has 76% stake in all such bodies, his personal gain is ~ Rs. 691 Cr. 12. Delhi, MP, Chhattisgarh and Rajasthan have imminent state elections. 13. Just consider the case of Rajasthan; it has a population of 7 Crores with 50% as eligible voters or 3.5 Crores eligible voters. 14. 35% of entire India is under BPL or 1.225 Cr of eligible voters of Rajasthan are BPL. 15. It is a well-known fact that poor in India are given cash before elections to vote for the benevolent party. 16. So with a cash of Rs. 691 Cr and 1.225 Cr eligible beneficiaries, each poor beneficiary gets Rs. 564, enough to swing is vote in favor of the benevolent party. 17. This is the way elections have been won in India for the last 60 years; poor have been kept poor, so that this trick can be applied without fail to win elections. 18. For other ordinary Indian, common man or Aam Admi, price rise is a demand – supply phenomenon, global phenomenon, you know…blah..blah..beyond our control, blah..blah..a few crocodile tears and things are normal after some time. 19. After a few more onion shocks, money made for other BPL beneficiary voters for other states, onion prices and all other prices will start cooling off 3-4 months before elections. 20. We Indians have very short memory, at the time of elections, “Al is well”. BPL voters are happy because they have got their share of cash. 21. And the rule continues……
Posted on: Sat, 17 Aug 2013 06:51:31 +0000
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