Govt plans onion reserve for 2011Amit Agnihotri

Caught unawares by the sharp hike in retail onion prices on December 20 last year, when the vegetable sold for `70-80 per kg, up from `30-40 per kg just a day before, and the political fallout it can have, the government is planning a strategic onion reserve for 2011.
Sources in the agriculture ministry said such a reserve would help the government quickly intervene in the market to bring down the domestic prices in case the prices go out of hand suddenly in the future.
Sources said what set the alarm bells ringing in the government was the information that onion prices soared inexplicably from `2,500 per tonne to `6,000 per tonne on December 20 in the Azadpur mandi in Delhi.
In a panic reaction, the government banned export of the commodity on December 21 and allowed duty-free imports the next day to cool domestic prices. Onion production in 2009-10 was 121 lakh tonnes out of which 18.73 lakh tonnes were exported.
Sources further said the government ignored warning signals of a possible price spiral due to supply constraints resulting from crop damage.

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Abu Salem threat to Sanjay Dutt?
Age Correspondent
Mumbai

Jan. 1: Crime branch sources indicate that extradited don Abu Salem may have threatened Sanjay Dutt on Shakeel Noorani’s behalf. Producer Shakeel Noorani had signed on Bollywood actor Sanjay Dutt for a film. However, Mr Dutt had pulled out of the shoot, and did not give adequate dates for the film to be made, despite repeated requests from Mr Noorani.
According to crime branch sources, Salem had intervened in Mr Noorani’s matter, and had subsequently sent his aides to Mr Dutt at Mehboob Studios, where the actor was shooting at the time.
“Mr Dutt had received threats from Salem at the behest of Mr Noorani,” said Rizwan Merchant, Mr Dutt’s lawyer.

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