Competition Commission of India

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Competitive Assessment of Onion Markets in India

As part of its capacity building initiative, CCI had commissioned a study on "Competitive Assessment of Onion Markets in India" to Institute for Social and Economic Change (ISEC), Bangalore with a view to assess competitiveness in major onion markets of Maharashtra and Karnataka. The study has highlighted certain institutional facts resulting in inefficiency in agricultural markets that adversely affects not only the farmers and consumers but also the state of competition in the market. The study comes with many findings and recommendations including indications of collusion among traders in selected markets in Maharashtra and Karnataka that may result in high prices of onion. Factors like significant marketing costs, lack of market infrastructure, control of trade in the hands of few traders, restricting entry for new traders, often strikes by market functionaries, etc. can also responsible for high prices of onion. Towards the end of the study has come up with a set of policy recommendations that aim at improving efficiency of market through competition.

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Page last updated on: 20/09/17

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