Nafed reduces retail onion prices by Rs 5 to Rs 35/kg

Agri co-operative Nafed today reduced onion prices by Rs 5 per kg, selling it for Rs 35 per kg in the national capital through its five retail stores.

"A decision has been taken to reduce the retail price of onion from Rs 40 to Rs 35 per kg with immediate effect owing to fall in onion prices in wholesale market," Nafed said in a statement.

Nafed, which along with 12 other agencies regulates onion exports, said it has decided to sell onion at cost price, without keeping any margins. The move is aimed at providing relief to people, it added.

Besides Nafed, Mother Dairy, Kendriya Bhandar and the National Consumer Co-operative Federation (NCCF) were selling onions at Rs 40 per kg through their retail outlets.

Onion prices had more than doubled early last week to Rs 70-85 per kg across the major cities of the country. The sharp spurt was attributed to crop damage in Maharashtra and Karnataka -- which account for 40 per cent of the country's total production of 12 million tonnes -- because of rains.

The Centre has banned onion exports and abolished customs duty on its imports to rein in prices, which have fallen about 50 per cent in the wholesale markets of Nashik district to Rs 32-35 per kg.