Onion prices are set to moderate further in the coming months as the supply of the commodity is expected to improve following projections of good crop in the late Kharif and rabi seasons.
According to reports by the National Horticultural Research and Development Foundation (NHRDF), fresh onions from the late Kharif season from Maharashtra and Gujarat continue to flood the markets and arrivals may intensify further, a senior government official said.
Heavy arrivals from Bhavnagar and Mahuva markets in Gujarat apart from those in Maharashtra have pushed the prices down a bit, but the rates may moderate further, he said.
Arrivals from Gujarat in high volumes are set to ease the pressure on onion from Maharashtra, which witnessed heavy demand from southern regions due to a decline in production in Karnataka following scanty rainfall, he said.
In northern states, the requirement of onion would be met locally as harvest in Haryana, Punjab and Uttar Pradesh continued till the end of January.
The price of onion in the major producing region of Lasalgaon in Maharashtra have declined to an average of Rs 1,151 a quintal as on February 6 from Rs 1,331 on January 15. Similarly, the average price in Delhi has come down to Rs 1,025 a quintal from Rs 1,370 during this period.