As per the data maintained by the National Horticultural Research and Development Foundation (NHRDF), onion prices increased to almost Rs 40/kg at Lasalgaon today as compared to a little over Rs 20/kg year-ago.
Anticipating further rise in prices, farmers and traders are withholding stocks in Maharashtra, the country's top onion producing state, and are releasing limited quantities for sale in the wholesale market.
About 5,000-6,000 quintals onion per day are getting into the mandi compared with Rs 15,000-18,000 quintals in the same period last year.
As of now, about 30 lakh tonnes of stored onion is left in the domestic market to cater the demand till September.
Total onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes in the year-ago.
Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states in the country.