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Thursday, 8 January, 1998, 13:51 GMT
Record onion prices in India lead to state subsidies

The record high price of onions in parts of India has prompted some state governments to buy up supplies and subsidise their sale to ensure this staple of Indian cooking remains affordable.

The high prices have been blamed on the early winter rains leading to crop failures in the north of the country, the region which supplies onions to most urban areas.

However, the BBC Delhi correspondent says there has been a glut of the vegetable in the western state of Gujarat, where prices have sunk below the cost of production.

From the newsroom of the BBC World Service

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