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Selling lemons: Prices squeeze pockets as summer demand soars -Zia Haq

-Hindustan Times

A lemon inflation has taken hold, according to traders, because an unusually early summer and heatwaves have spiked demand. The crop this year was also smaller in some states, according to traders.

The ‘market for lemons’ is hot. Prices of the essential summer citrus fruit have risen to unseen levels in the country, reaching up to 200 a kg in Rajkot on Saturday, leaving consumers angry and shocked.

Traders said they were helpless and simply passing on higher wholesale prices. “This is a simple lemon. How can it cost so much?” said Raja Khan, a daily wager in Delhi.

The situation is a nod to Nobel-winning economist George Akerlof’s famous insight about ‘selling lemons’, which fetched him the Nobel Prize. It states that only traders know the true value of what they are selling.

According to official Agmarknet data, in March, the average wholesale price of lemon jumped 80% to 5,100/quintal over February.

A lemon inflation has taken hold, according to traders, because an unusually early summer and heatwaves have spiked demand. The crop this year was also smaller in some states, according to traders.

Poor and middle-class consumers commonly rely on roadside lemon juice pressers to quench thirst during summers. Lemon is also an essential ingredient to marinate dishes.

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