Recurring Onion and Tomato Crises in India

Abstract

India stands second among the largest producers of onions and tomatoes, contributing up to 10 percent of the global production and play a pivotal role in household consumption. However, they are exposed to frequent production constraints and thereby disturbing the demand-supply chain resulting in wild market fluctuations. The price volatility poses significant challenges, affecting both household budgets and the livelihoods of farmers. In this chapter, a comprehensive analysis of various factors contributing to crises has been carried out to understand critical gaps, historical and secondary data were systematically analyzed using various statistical tools to understand the trends; model production-consumption patterns to provide a nuanced understanding of the challenges faced by farmers and the economy as a whole. The chapter proposes appropriate strategies both at production and post-production front as well as policy making for robust market information systems; price stabilization mechanisms to mitigate the frequency and impact of onion and tomato crises on producers.