The year 2015-16 has been a very difficult year for the Indian economy. The global environment remained unfavourable for exports and slowdown in the major economies, put downward pressure on the growth rate of Indian economy as well. India faced four consecutive unfavourable weather seasons which hit agricultural and rural economy hard.
Fruits and vegetables gives 4-10 times the return from other crop groups namely cereals, pulses and oilseeds. A study on sources of growth indicate that diversification towards horticultural crops is the most powerful factor in raising growth rate of GDP agriculture.
Onion price shocks are hitting India frequently and they are getting severe. It is ironical that sharp price spikes are experienced almost every third year despite impressive growth in onion production in the country which has risen from below 5.5 million tonne till 2002-03 to above 19 million tonne in the recent years.