Wholesale onion prices fall below Rs 30/kg at Lasalgaon

Wholesale prices of onion fell below Rs 30 per kg at the Lasalgaon in Maharashtra, Asia's biggest onion market, on improved supply and export curbs.

According to the data maintained by the Nasik-based National Horticultural and Research Foundation (NHRDF), wholesale onion prices on Tuesday declined to Rs 28.50 per kg at Lasalgaon from the peak Rs 57 per kg in August.

"Prices are expected to come down further in the coming months because of improved supply via imports and fresh arrival of kharif onion crop in Maharashtra, Andhra Pradesh and Karnataka," NHRDF Director R P Gupta told PTI.

The wholesale prices of onion at Lasalgaon are expected to be in the range of Rs 20-30 per kg in the coming days, he added.

State-owned MMTC has contracted 2,000 tonnes of imported onion from China and Egypt on behalf of the government to boost availability and check prices.

Besides importing onions, the government has curbed exports by raising minimum export price, restricted holding of stocks and taken action against hoarders to ensure availability and contain price rise.

According to NHRDF, onion harvesting in Karnataka and Andhra Pradesh is in full swing, while harvesting in Maharashtra has just begun. The onion supplies are expected to improve further as crop in most states is in good condition.

"Although production may come down in Maharashtra due to deficit rains, the country's overall output is expected to be more or less at last year's level," Gupta added.

Onion production stood at 18.73 million tonnes in the 2014-15 crop year (July-June), slightly lower than 19.40 million tonnes in the previous year.