Factors affecting demand.

• Festive seasons
During Deepavali, people using onion in their meals that they serve to family members and
guest such as Spring Onion Pakoda and Vadai. Therefore, huge amount of onion needed to
serve meals for their family and guest during the festival cause the demand increases.
• Consumer taste, fashion and preferences
Deepavali is celebration that have been celebrated for a very long time. Most Indian try to
keep up their traditional food to be served as to ensure that the significant of Deepavali can
be treasured.
• Expectation for the future
the expectation that the price of onion will increase after the end of the celabration, affected
by the supply might decreases after the celebration.

Factors affecting supply.

• A change in government policy. It represent a payment to suppliers in addition to any

revenue received from sales and raises the amount of profit obtained from supplying any
given level output. During the celebration of the Deepavali, the government will increase the
subsidy of onion. Because of that, the supplied onion can be increases.
• The numbers of suppliers
the number of suppliers for Deepavali increases as it required in the meals making by the
Malaysian people. Therefore, the number of onions supplied also increases.

Practical: The supply of onion during Deepavali.

The supply of onion this year were more than enough as been told in in Berita Harian on 9 November
2023. The Deputy Minister of Domestic Trade and Cost of Living said, the government is trying to get
onion supplies from several other countries and does not rely on a single source even though the
supply has not been affected. They are trying to get more supply from nearby country such as China
and Thailand.

Moreover, the government subsidy given to the suppliers to ensure that the stock of onion is enough
for our daily uses. As we know, our major supplier of onion, India, has limiting their export of onion.
The prohibition start from 29 october 2023 until March 2024 because of flood that happened in their
country and they wan to ensure that supply is enough for their people . As for that, many other
supplier trying to take advantage by increase the price to gain more profit. In way to overcome the
increasing of price, our government has given subsidy and implement Skim Harga Maksimum Musin
Perayaan(SHMMP) to help people by lighten the burden of daily expenses.

In addition, The Malaysian Agricultural Research and Development Institute (Mardi) has developed a
Standard Operating Procedure (SOP) for red onion cultivation. This is one of government effort to
reduce importing onion from other country, plus can help in economic growth for the agriculture
sector. the effort is due to the import onion supply crisis due to the major flood disaster in India in
2020 which resulted in the sale price of onions increasing up to three times from RM3 per kilogram
to RM16 per kilogram. As an initial step in the commercialisation of red onion production, the
expansion of basic onion seed crops will be implemented in stages from this year and next year in
several selected locations throughout the country.