Onion prices at Lasalgaon in Maharashtra, Asia’s biggest market for the key kitchen staple, today declined to Rs 25/kg from the level of 30-35/kg last week on improved supplies.
Lasalgaon mandi sends a price signal for the rest of the country and, therefore, onion traders keep a track of this market.
According to official data, onion arrivals have risen in the last four-five trading days. The arrivals at Lasalgaon mandi today stood at 22,000 quintals, much higher than 8,000 quintals on November 22.
The improved supplies in other growing states - Rajasthan and Madhya Pradesh - have also put downward pressure on prices at Lasalgaon.
The new kharif onion crop is underway although the overall output is likely to be lower this year. Meanwhile, the government has taken measures to boost local supply and control prices.
Exports have been curbed by imposing a minimum floor price of $850 per tonne. State-owned MMTC has floated a tender for import of 2,000 tonnes, while Nafed and SFAC has started sourcing 14,000 tonnes locally for distribution in consuming areas.