The impact of India’s onion policy on local growers and communities

Abstract

India’s recurring onion price crises exemplify the intersection of structural agricultural inefficiencies, speculative market practices, and flawed policy interventions. This viewpoint investigates the causes of extreme price swings in India’s onion markets, focusing on systemic vulnerabilities such as hoarding, infrastructure deficits, and incon­sistent governance. Drawing on empirical data from government reports, agricultural studies, and market analyses, we argue that speculative trading and political collusion exacerbate natural supply-demand imbalances, disproportionately harming smallholder farmers and consumers. By prioritizing decentralized solutions like blockchain-enabled farmer cooperatives and solar-powered micro-storage, this viewpoint demonstrates how empow­ering local communities can result in retaining profits within rural economies and fostering cli­mate-resilient agricultural systems. These strategies align with circular economy principles and address intergenerational equity by curbing the migration of youth out of farming regions.

Keywords

• agricultural price volatility
• speculative trading
• supply chain governance
• policy failure
• onions
• India