After a massive spike in onion prices earlier, prices are now beginning to moderate on government's various curbs to check rising prices and on increase in supplies across Nashik i.e. the main hub of onion trade in the country.
The centre on a recent basis has taken a decision on importing the vegetable and also has imposed stock limits on the agricultural commodity.
With effect from October 24, a cap of 25 tonnes of onion has been placed for wholesale traders while 2 tonnes shall be available for retail outlets.
"With rains stopping, arrivals have also improved from various parts," said Jayachandra Muthyala of Nashik-based Jayachandra Foods Pvt. As against November 9, wherein onion prices were at Rs. 3300 to Rs. 4500 per quintal, the rates have come down to Rs. 2900-Rs. 3600.
In fact prices have come down sharply by as much as 40 percent from the prices seen in the third week of October wherein at certain retail outlets across the country, onion was available for Rs. 100 per kg. In Nashik at that time, trade in onion was done at the rate of Rs. 5600 to Rs. 6000 per quintal. Prices are still on the higher side in cities like Chennai where it still quotes at Rs. 90 per kg.
"Onion prices are currently ruling between Rs 40 and Rs 60 a kg in primary agricultural markets in Maharashtra. Arrivals of Kharif crop have begun and the Centre's decision to import have also had an impact," said Sohanlal Bhandari chairman, Nashik District Onion Traders Association.
India will be importing 1 lakh tonne of onion which shall fill up any shortfall for the few weeks' time.
And as arrivals of onion is expected to gain pace post December, onion prices are unlikely to fall below Rs. 30 per kg until January.