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Prices of Onions: An Analysis

There was a substantial increase in onion production until 2008-09, resulting in a rise in market arrivals. However, due to unseasonal rains, the production of onions declined by about 20% in the three major growing states during 2009-10 and 2010-11. The recent sharp rise in the prices of onions can be attributed to a decline in kharif production on account of unseasonal rains at harvest time in the major onion producing states, a reduction in the minimum export price and consequent increase in exports during November 2010 and a holding back of stocks by traders.
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