The Government of India has launched a scheme on Vegetables Initiative for Urban Clusters (VIUC) within the overall Rashtriya Krishi Vikas Yojana (RKVY) Scheme. It has also launched the National Horticulture Mission (NHM) for holistic development of horticulture sector. Under NHM, financial assistance is provided for taking up various activities relating to horticulture crops including onion.
In order to facilitate the farmers to sell their produce to direct consumers with a view to reduce intermediations, marketing costs and to improve farmers’ share in the consumer price, several States have promoted farmers-consumers markets. These include Apni Mandi in Punjab & Haryana, Kissan Mandi in Rajasthan, Rythu Bazar in Andhra Pradesh, Uzhavar Sandai in Tamilnadu, Shetkari Bazar in Maharashtra, Raithara Santhe in Karnataka and Krushak Bazar in Orissa. These markets are beneficial to both farmers and consumers.
Prices of vegetables are mainly governed by the market forces of demand and supply, cost of transportation, cost of storage and rising demand due to increasing incomes, urbanization etc. In case of onion, the untimely rains in different onion growing areas, which has affected the crop and its supply chain, has contributed to sharp increase in its prices.
Monthly Wholesale Price Index (WPI) (Base Year 2004-05=100) for vegetables for the period January, 2012 to January, 2013 indicates that the WPI of vegetables started rising from January, 2012 itself to June, 2012. Thereafter the WPI of vegetables have shown a declining trend upto January, 2013 with marginal fluctuation in the month of October and November, 2012