Tear-jerker: Cartels in onion market, hints of price fixing, says CCI study
During the agricultural year 2011-12, onion was grown in an area of 1.04 million hectares with a production of 15.75 million tonnes.
The study has also suggested various measures to improve the overall functioning of onion markets.
"To avoid collusion between traders, involvement of Agriculture Produce Market Committee (APMC) officials in the auctioning process should be mandatory. Besides, co-operative marketing societies must be encouraged so as to prevent collusion amongst traders," it said.
"Onion is one of the most market sensitive commodities that creates ripples in the trade as also political circles.
Its significant position in the diets across all income groups and an important ingredient in many Indian recipe causes wide ranging effects of any significant price change," the report said.
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