Prices of onion have dipped below Rs 10 per kg, the lowest level in the fiscal so far, at the Lasalgaon wholesale market in Maharashtra. The prices of the kitchen staple at the Lasalgaon have fallen by more than 76 per cent to Rs 9.50 per kg in February from Rs 41.30 per kg in September.
According to the data maintained by Nasik-based National Horticultural and Research Foundation (NHRDF), wholesale onion prices are being sold at minimum rates of Rs 7 per kg and maximum Rs 14.22 per kg.
"The onion prices have been continuously falling from October as there was spike in supplies with the arrival of the lake kharif onion crop," NHRDF Director R P Gupta noted.
The prices have already touched the lowest level in the year so far and is expected to fall further by Rs 1-2 per kg as there has been a smooth flow of supplies across the country, Gupta added. Onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes a year ago.
In August this year, the retail onion prices had shot up to Rs 80 per kg in the national capital due to tight supply despite the government's efforts to keep a lid on prices. During the year, the government had also imported onions to keep a tab on the prices. At the same time it had also hiked onion MEP to USD 700 per tonne. However, in December last year the MEP on Onion was scrapped.
Onion exports have declined by 18 per cent to 4.86 lakh tonnes in the first half of the fiscal due to government's steps to curb outbound shipments.