Onion prices may drop soon as fresh produce from Nashik reaches markets

New Delhi: Onion prices could witness a steep drop as new stock from Nashik reaches markets, the wholesale market price of desi onion has now been halved. In Delhi's Okhla Mandi the supply of onion was double on Saturday due to the fresh produce and people are likely to be relieved after the price drop. 

Shakeel, an onion trader from Nashik said, ''Onion prices have come down drastically in the last two to three days and onion prices have come down by half as new onion crops are ready in Nashik and Delhi. the onions are now being supplied in the entire country.'' He added, ''The stock of onions in Okhla Mandi has increased as now the supply is up to 250 tons which used to be 100 tons during the shortage.''

He further said that due to the old stock, people are still compelled to buy onions at increased rate. Interest traders believe that as soon as the new stock comes in the market, there will be a huge fall in the price of onion and from the next week.

The other reason for the expected price drop is the surplus stock of imported onion which is getting no buyers. There is approximately 5000 tons of onion having no buyer in the market. The state governments are also not showing any interest in purchasing imported onions. As per the onion traders, the supplied onions are tasteless and therefore people do not want to buy it. 

However, the government has now stopped onion imports and has set stock limit for traders. The government is also supplying buffer stock at a cheaper rate. 

The price of onion had plunged over the last three months due to untimely rain in several parts of India.