'Intervention, proper mechanism can tackle onion price swings'

The volatility in onion prices can be managed through appropriate mechanism and intervention like enhanced storage and promotion of cultivation of vegetables, said NITI Aayog Member Ramesh Chand.
"The volatility in onion prices can be managed through appropriate mechanisms and interventions. These measures include enhancing of storage infrastructure, stocking of onion by central agencies like NAFED, state-level entities and public parastatals," Chand said in his blog post published on the NITI Aayog website today.
He suggested promoting onion cultivation in other states including Uttar Pradesh and popularising onion production in kharif season.
"It is ironical that sharp price spikes are experienced almost every third year despite impressive growth in onion production in the country, which has risen to above 19 million tonnes in recent years," he said in his blog.

The country experienced an annual growth rate of above 13 per cent in onion production during the last 13 years since 2000-01, which has not been matched by any other food crop in recent times.
However, domestic and overseas demand for onion seems to be outpacing growth in supply. Per capita availability of onion has risen to more than 13 kg in recent years from 4 kg in 2002-03, an increase of 12 per cent every year.
"It looks strange that increased availability is associated with increase in price volatility rather than providing flexibility to absorb small shocks in supply," he added.

Chand put down the abnormal hike in prices to production shock generally caused by weather-related events, he added.