Wholesale onion prices hit lowest level of FY16 at Rs 9.50

New Delhi: Prices of onion have dipped below Rs 10 per kg, the lowest level in the fiscal so far, at the Lasalgaon wholesale market in Maharashtra. The prices of the kitchen staple at the Lasalgaon have fallen by more than 76 percent to Rs 9.50 per kg in February from Rs 41.30 per kg in September.

According to the data maintained by Nasik-based National Horticultural and Research Foundation (NHRDF), wholesale onion prices are being sold at minimum rates of Rs 7 per kg and maximum Rs 14.22 per kg.

"The onion prices have been continuously falling from October as there was spike in supplies with arrival of the lake kharif onion crop," NHRDF Director R P Gupta told PTI. The prices have already touched the lowest level in the year so far and is expected to fall further by Rs 1-2 per kg as there has been a smooth flow of supplies of the edible bulb across the country, Gupta added.

Onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 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 had also imported the onions to keep a tab on the prices.

At the same time it had also hiked the onion MEP to USD 700 per tonne. However, in December last year the MEP on Onion was scrapped.

The onion exports have declined by 18 percent to 4.86 lakh tonnes in the first half of the fiscal due to governments steps to curb outbound shipments.