Rohit Ranjan Economist & Analyst The onion is considered as uncompromisable staple ingredient in Indian kitchens. It accounts for less than 1% by value of India's agricultural production. India is the second largest producer o f onions after China. It produces about 220 lakh tonne of onions per annum while its annual consumption is about 160 lakh tonne. And to maintain the optimal price level it has to export ~10% of production unless weather events adversely impact the crop. Onion commands far reaching impact on daily lives of large number of people in India to the extent that at times it also affects the political scenario in the country. Its fluctuating price determines the direction of inflation. It is regarded as the decisive factor in the 1998 state elections in Delhi and Rajasthan, and was responsible for bringing down the central government in 1980. Even in late 2019, it made lots of political furore thro ugh its ever increasing prices.