For the past few weeks, the rise in onion prices has been the main story in the food sector. This is not new, and every time onion prices go up, there is an outcry against the government.
What explains this fear surrounding onions? Well, onions are the second most consumed vegetable in India, after potatoes. An average Indian household spends 13% of its total vegetable bill on onions alone. If one were to include potatoes and tomatoes as well, the share reaches 44% of the total vegetable consumption bill. Potatoes are the most consumed vegetable in India, with a share of 20% in total vegetable spending.
The headline number of the all-India share in vegetable consumption actually hides the dominance of onions in vegetable consumption in large parts of the country. Onions have a greater share in vegetable consumption than potatoes in southern and western states such as Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Maharashtra.
It is actually the poorer states which drive up the overall potato consumption figures. Potatoes account for more than 30% of the total spending on vegetables in states such as Bihar, Jharkhand, Uttar Pradesh and West Bengal.
This is to be expected, since onions, unlike potatoes, are taste-enhancing ingredients, rather than a source of calories.
These figures have been calculated from the 2011-12 (latest available figures) Consumption Expenditure Survey (CES) conducted by the National Sample Survey Office. CES is the most authoritative source of consumption data in India.
To be sure, spending on vegetables was just 10% and 9% of total food spending in rural and urban India in 2011-12. Cereals, milk, and milk products had the biggest share in food consumption in India.
Source: hindustantimes.com
