New Delhi: Wholesale prices of onion have dipped to two-year low of Rs 7 per kg at Lasalgaon, the largest market of the bulb in Asia, in Maharashtra due to increased supply.
The prices of the kitchen staple have fallen by more than 83 percent from Rs 41.30 per kg in September last.
According to the data maintained by Nasik-based National Horticultural and Research Foundation (NHRDF), onion is being sold at minimum rate of Rs 4 per kg and maximum of Rs 10.51 per kg, at present, in wholesale market.
"The onion prices have been falling on higher supplies compared to its demand and now it has touched Rs 7 per kg, the lowest level in last two years," NHRDF Director R P Gupta told PTI.
Gupta added that the supplies have substantially increased from major onion producing states of Gujarat, Maharashtra and Madhya Pradesh.
The prices have already touched the lowest level in the year so far and are expected to fall further by Rs 1-2 per kg due to sufficient supplies of the bulb across the country, he added.
Onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June) against 194 lakh tonnes a year ago.
In August this year, the retail onion prices had shot up to Rs 80 per kg in the national capital due to tight supply despite the government's efforts to keep a lid on prices.
During the year, the government also imported onion to keep a tab on the prices. At the same time it had also hiked the onion MEP to USD 700 per tonne to discourage exports.
However, in December last year the MEP on onion was scrapped.