Reasons behind the soaring price of lemons Be it a chaat or a refreshing lemonade, lemon is the need of the hour in scorching summers. It not only provides relief from the hot and humid weather but revives the body from within. But, with the way the price of lemons skyrocketing, it seems that having a lemonade is a thing of the past. At present, lemons are being priced at 300- 400 INR/kg across India and in retail, while the wholesale market is selling them between 120-150 INR/kg. This means that a medium-size lemon now costs between INR 10-15. Due to the exorbitant lemon prices, people are even gifting the lemon boxes as a gift. Recently, a man who was getting married in Gujarat got 2 boxes full of lemons as a gift at his Haldi ceremony. The idea behind the gift was that lemons are getting dearer while it is a much-needed vegetable in summers. There are numerous reasons why lemon prices are soaring and today we are going to talk about all of them. Take a look. High demand vs Low supply It is the most basic reason why there has been a major hike in lemon prices. Due to the summer arriving earlier than expected, there is a high demand for lemons. However, the natural calamities across the country and the cyclone affecting the lemon crop in Gujarat, have created a shortage in supply. Also, last year the monsoon was good but the months of September and October had brought heavy rainfalls, affecting the lemon farming. Two of the most popular harvests Hasta Bahar and Ambe Bahar resulted in a very less quantity. The rise in fuel prices There has been a rise in fuel prices across the country which has affected the transportation costs as well. With petrol and diesel prices touching 105 and 96 respectively, the vegetable prices have also been affected, which has left a hole in the pocket of the common man. Empty cold storage Often, until the Ambe bahar arrives, lemons are stored in cold storage and marketed across the country. However, this year due to the cold storage is getting empty as the next harvest will be from June to September.

The rare 'bahar failure' year Traders have cited that this year is one of the rarest years when the two bahars have failed consecutively. Presently, Ambe Bahar is cycling the market but may not be sufficient to meet the demand as it is the most important harvest season which caters to the demand for lemon prices. The bottom line The correction in the lemon prices will not happen immediately as predicted as neither the harvest season nor the fuel prices are going to slow down in the near future.

that is the article written in response.

Task: Utilise the model of demand and supply to analyse the market for lemons in India at the time of the article. Clearly explain the impacts on demand and on supply, as well as the resulting impacts on the outcomes of price and quantity at the time of the article. Ensure that you use diagrams where relevant to support your answer, and make sure to use key terminology and course concepts where appropriate.