Factors Influencing Onion Prices in India

This study attempts to identify factors influencing onion prices and quantify their influence. Onion prices witness a good deal of seasonality, which is larger in prices prevailing in producing markets than in overall all-India prices. The acreage under onion seems to be influenced by prices prevailing in the previous two years, while the export quantity is influenced by domestic prices and domestic production. The onion prices themselves are influenced by the production in the previous-year, exported quantity in the previous year and export price in the current year. The per capita production of onion does not show any increasing or decreasing trend. The study highlights areas of further research and policy implications.