Retail onion prices shot up to Rs 90 per kg in Indore, a major commercial centre of Madhya Pradesh, on Thursday due to short supply from neighbouring Maharashtra, traders said.
Devi Ahilyabai Holkar Mandi, a wholesale fruits and vegetable market located in Indore city, is one of the major centres for onion trading in the region.
Apart from Madhya Pradesh, onion is supplied to Uttar Pradesh, Chhattisgarh and Rajasthan from this market.
Unseasonal rains damaged onion crop in Maharashtra in October and November, said Sandeep Sachdeva, a wholesaler.
"As a result, supply has been affected significantly. This has had a direct impact on prices," he said.
Demand for onion from neighbouring states has also increased, which has led to further increase in prices, he added.
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Market sources said new onion crop, which has some amount of moisture, is being sold at Rs 40 to 50 per kg in the retail markets of the city, while the price of good quality dry onion (old crop) has shot up to Rs 90 per kg.
The prices may continue to rise for the next 20 days due to supply issues, a trader said.