Onion production in India is estimated to rise by nearly 2 tonnes to 15.7 million tonnes in the 2011-12 crop year.
"Production of onion as per estimates made is likely to be in the order of 15.7 million tonnes during 2011-12 (July-June)," Food Minister K V Thomas said in a written reply to the Rajya Sabha.
India ranks second in the world in onion producion. Maharashtra and Gujarat are the main producing regions of the kitchen staple.
The output of the bulb in the country was about 13 million tonnes in the 2010-11 crop year.
India had witnessed serious supply crunch of onion in late 2010 and early 2011 when the prices of the important vegetable had rocketed to Rs 80-85 a kg in the retail.
The demand for onion is reported to be more or less stable throughout the year during 2011-12, the minister said.
Thomas said the government has permitted export of onion without any Minimum Export Price (MEP) for about three months from May 8 till July 2 this year, after which the situation would be reviewed.
Earlier this month, decision to end fixing a benchmark price, below which onion could not be exported, was taken at a meeting chaired by Prime Minister Manmohan Singh.
Due to high export price of onions, India had lost its competitive edge in international crop markets to China and Egypt.
In January this year, the government had lowered MEP of all varieties of onions, except Bangalore Rose onions and Krishnapuram onions to $150 per tonne.
However, onion traders and onion growers said the decision to do away with export price came "late".