In: Economics
Business analysts question whether the Government should leave the onion matter ( India Shedding Tear Over Onion Prices) of export and domestic price fluctuations to the natural forces of demand and supply, and intervene in the market only in the event of a large volatility, by subsidizing onions to consumers. Should farmers and traders benefit from such a policy, or should government scale up storage facilities by investing heavily in infrastructure to provide long- run price stability?