Agri Business

Supply crunch sends onion prices soaring again

PTI Lucknow | Updated on January 03, 2011 Published on January 03, 2011

IN DEMAND: Price rise was mainly due to short supply of the onion in the market. -- Ch. Vijaya Bhaskar   -  THE HINDU

After a brief lull, onion price has once again started soaring in the local vegetable market, due to supply shortage for the bulb vegetable.

“Onion prices, which had dropped to Rs 30-Rs 35 a kg last week... is now being sold at Rs 45-50 a kg, depending upon its quality,” said an office-bearer of the city vegetable market association.

He said the price rise was mainly due to short supply of the onion in the market.

“Supply from Nasik, which is the biggest supplier of onion, is very limited, as transportation has been affected due to foggy condition. Besides, our local supply is inadequate,” he said.

Earlier, the district administration in its effort to control prices and provide onion at cheaper rates to the consumers, had opened 36 fair price outlets in the city.

Prices at retail outlets has been fixed at Rs 20-24 a kg for grade-A onions, Rs 16-19 a kg for the grade B onions and Rs 9-15 a kg for C grade quality.

This had led to a fall in prices before short supplies again pushed this food commodity price to the current high. Besides onion, tomato prices has also shot up to Rs 40-50 a kg.

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Published on January 03, 2011
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