India Targets 27% Increase in Kharif Onion Acreage Amidst Rising Vegetable Prices

India aims to increase kharif onion acreage by 27% to 361,000 hectares this year to combat rising vegetable prices. The move comes as onion prices have surged due to adverse weather conditions. While the government is optimistic about stable onion prices due to higher releases from the rabi harvest, the monsoon’s timely arrival is crucial for robust crop production and food price stability.

Exploring the Role of TOP (Tomato, Onion, Potato) in India’s Inflation Dynamics

Inflation, as measured by the Consumer Price Index (CPI), is a crucial indicator of economic health, reflecting changes in the general price level and cost of living. In India, the CPI basket comprises 299 items, with vegetables holding a significant weight of 6.04%. Among vegetables, the trio of tomato, onion, and potato (TOP) plays a pivotal role in influencing overall CPI figures and food inflation. Despite constituting only 6% of the CPI basket, TOP has contributed as much as 30% to inflation in certain months. This volatility is attributed to several factors, including weather fluctuations, supply chain disruptions, and market forces. The article emphasizes the need for effective policy interventions and a better understanding of agricultural supply chains to mitigate the impact of TOP volatility on inflation and support farmers.

Scroll to Top