Onion Prices In India: Case Study Analysis
Table of Contents
Introduction 3
Objectives 4
Addressing the Key Issues 4
Economic Analysis of the Onion Market in India 5
Onion Market in Normal Circumstances and No Protection Measures 5
Onion Market in Exceptional Circumstances and No Protection Measures 7
Onion Market in Exceptional Circumstances Assuming Protection Measures 7
Similar Agricultural Product in Other Country 9
Market Structure, Demand, Supply and Pricing 9
Supportive Government Policies 10
Suggested Advice for the Indian Government 11
Recommendations for the Short Term 11
Recommendations for the Long Run 11
Conclusion 13
References 15
Introduction
Within the suggested case study “India Shedding Tears over Onion Prices”, the analysis of the onion sector of the agricultural market of India within the period between December of 2010 and January 2011 was covered. In this winter season, the prices for onions in the country took an exceptionally sharp rise, and almost doubled from the starting point of Rs 30 in the beginning of December to Rs 50 by the end of same month. As a result, onion consumption was reduced across all income categories, as well as within the restaurant industry.
The case study on the Indian onion crisis is specifically valuable for analytical and educational purposes because it incorporates a number of various heterogeneous factors which influence the aggregate market equilibrium and suggest different and at times contradictory ways of coming out of the described crisis situation. Similarly, by exploring the causations influencing the market prices for agricultural commodities, it is possible to better understand the developments on the modern agricultural markets and give suggestions for the optimization of respective processes.
In the current paper, first of all the section of describing the key issue will address the subject of economic analysis of the Indian onions market, looking at the situation in the normal circumstances and no protectionist measures, extraordinary situation with protectionist measures and the extraordinary situation without protectionist measures. The subsequent section of the paper will cover the analysis of the potato market in Australia, which qualifies as an example of a similar commodity in another country. Lastly, the section on the recommendations for the Indian government as of 2011 will be presented, basing on the analysis of the market forces and causal researches and the subsequent research on the related agricultural market. Even though the recommendations are aimed to address the situation of 2011, they might also be valuable for similar crisis instances on the commodity markets of different countries or in the cases of some other agricultural commodities other than onions.
Objectives
The major objective of this assignment is to get an understanding of the supply and demand factors affecting the prices and quantities sold and suggested for sale at the global agricultural factors. Given that the case study gives a comprehensive account of the heterogeneous factors which contributed to the situation both on the side of the government and the market itself, it is possible to better understand the …
