New Delhi: Wholesale onion prices today fell by Rs 10 per kg in Delhi's Azadpur market to Rs 40-45 per kg as high retail prices have weakened demand for the edible bulb.
Retail prices are, however, still hovering around Rs 70 a kg in the national capital. Mother Dairy's Safal outlets are selling onion for Rs 50-55 per kg. NAFED is also selling onion at Rs 55 per kg through its five outlets and mobile vans.
Traders said softening of wholesale prices is expected to get reflected in retail markets in a day or two.
At Lasalgaon mandi in Nashik district, prices have eased by Rs 5 per kg to Rs 35-40 per kg, according to the data maintained by the National Horticultural Research and Development Foundation.
"Prices have come down today due to lower sales. Stocks have piled up in the market due to lower demand," Onion Merchant Traders Association President Surendra Budhiraj said.
Onion supplies to the city, which come from Maharashtra, Rajasthan and Madhya Pradesh, were normal at 12,000 quintals whereas more than half of the yesterday's stocks have also been not lifted from the market, he added.
To control rising prices, the government had imposed a minimum export price (MEP) of USD 650 per tonne and had directed cooperative major NAFED to import onions.
Nafed may float a tender early next week for importing onions to boost domestic supplies.
India had exported 6.39 lakh tonnes during April-July period of this fiscal compared with 6.94 lakh tonnes in the year-ago period. Production stood at 16.6 million tonnes in 2012-13.