With the constant hike in the price of onions being the most talked about topic, there are certain misconceptions along, which need to be addressed. With the price of onions reaching Rs. 200 per kg at some of the places, there might be people who think that all of this is filling the pockets of the farmers. However, this isn’t true at all.
The economic studies and economists reveal the other way round. When the prices of onions is on a low, it is the farmers who bear the losses. And, when the prices soar high, the profit chunk is not received by the framers. It is actually the middlemen who are the most benefited in the situation of the onion price hike. The absence or the lack of the storage facilities to the farmers actually forces them to sell the crop at low rates to the middlemen otherwise the crop would wither away.
This is the time when government intervention is expected in order to do the situation any better. Long term solutions should be focused upon rather than doing away with the situation for the current period. However, the economists here, predict again, that the situation will likely normalize in the immediate months of the new year when the new product is ready to be available for sale in the market.