Page 197 - economic_survey_2021-2022

Prices and Inflation 171

2. Onion:

Seasonality in onion:
Rabi season: transplantation in December-January and harvest in end March to May - accounts
for about 70 per cent of total onion production in a year. The seasonal component is found to put
downward pressure (negative values in Figure 1D) on prices coinciding with the Rabi harvest period,
and upward pressure (positive values) in other months, reaching peak in December. The other two
production seasons viz., Kharif - transplantation in July-August and harvesting in October-December
-, and late Kharif - transplantation in October-November and harvest in January-March, face supply
deficit.
Figure 1D: Seasonality in the retail prices of onion

10
2019 2020 2021
5

Rs. 0

-5

-10
January February March April May June July August September October November December

Source: Survey calculations

Price shocks in onion:

Four incidents of price shocks have been identified based on the inspection of the plot of
irregular component in the retail price of onion (Figure 1E). Possible reasons of the incidents
are listed in Table 1B.

Figure 1E: Irregular component in the retail prices of onion

40

30

20
Rs.
10

0

-10
Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21

Source: Survey calculations