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LATEST NEWS UPDATES | India cries onion tears as prices touch Rs 70-80 a kilo

India cries onion tears as prices touch Rs 70-80 a kilo

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published Published on Dec 20, 2010   modified Modified on Dec 20, 2010

Onion prices have hit the roof across the southern states — Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh. From Pune, Bangalore and Chennai the retail market feedback was the worst, a kilo going for between Rs 70 and Rs 80.

Prices in Hyderabad too showed a steady rising trend. At supermarkets in glitzy Banjara Hills they had touched Rs 50 a kg and market watchers feared the rates could go even higher. On Saturday, prices at farmers' bazars — the 'rythu' markets — across Hyderabad had doubled from the normal Rs 10 a kilo to Rs 20. Farmers sell directly to customers at the 'rhythu' markets, hence they are known to be cheaper than the pricier supermarkets.

The situation in Bangalore was just as worrying with prices touching Rs 80 a kg. With onion prices touching an unprecedented Rs 80 per kg in the city, onion dosa is off the menu in many hotels.

Elsewhere in Karnataka, the cheapest you could buy a kg of onion for was Rs 60.

Pune sits bang in the middle of Maharashtra, the country's highest onion producer. The soggier variety was selling at Rs 65 a kg in the city's retail markets, reports said. The older lot with less water and a higher shelf life was Rs 70. In fact, in Pune, onions have outpriced fresh green peas that have been going at Rs 50 a kg.

Commission agents at Pune's wholesale market attributed the shooting onion rates to a supply crunch. Unseasonal rains in parts of western India and some southern states have damaged the crop.

Rajshekhar Patil, a commission agent at the Pune Agriculture Produce Market Committee, said, "Wholesale onion prices were around Rs 900 a quintal in July. Now they are Rs 6,000 per quintal."


The Times of India, 21 December, 2010, http://timesofindia.indiatimes.com/india/India-cries-onion-tears-as-prices-touch-Rs-70-80-a-kilo/articleshow/7134589.cms


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