New Delhi, Oct 26: Improvement in supply line both in Maharashtra and Delhi has had a sobering effect on onion prices and government feels further stabilisation is likely after the Diwali festival. "There is no need to press the panic button. Prices are again moving southwards. With increased Mandi arrivals, it is expected that they will fall further in the next one week," official sources told a news agency.

According to the latest official data, onion retail prices here are now quoting at Rs 13 a kg even though consumers claim they have to shell upto Rs 17 per kg. In Delhi's Azadpur Mandi, the daily arrivals which had dipped to 5,900 quintals on 26th of last month touched a high of 11,700 quintals on October 21. Yesterday, it was 10,000 quintals. Due to lower supplies, the 'maximum' prices had also spiralled to Rs 1400 per quintal.

They have once again fallen by over Rs 200 a quintal and are now quoting at around Rs 1,125-Rs 1,150 per quintal. Maximum quantity is now being traded at Rs 700-Rs 725 a quintal in Azadpur. Unprecedented rains last month had affected the standing crop in states like Maharashtra and Madhya Pradesh. Harvest was delayed and a substantial portion of the crop was damaged.

It was feared that had the rains continued for a few more days, production would have been badly hit and prices may have jacked up to alarming levels.

Bureau Report