Onion price at Lasalgoan in Maharashtra -- Asia's biggest wholesale market for onions -- today rose to Rs 43 per kg, the highest so far this year, due to sluggish supply of the crop.
The current wholesale price is higher than the average rate of Rs 36.94 per kg and Rs 16.10 per kg that prevailed in August 2013 and 2014, respectively.
As per the data maintained by the National Horticultural Research and Development Foundation (NHRDF), onion prices today increased to Rs 43 per kg at Lasalgaon due to sharp decline in arrival of the crop.
About 3,500 quintals arrived in the mandi today, as against over 10,000 quintals in the year-ago period.
Traders said, prices are under pressure due to production fall and sluggish supply of stored onions meant for meeting the demand during the lean period of July-September.
Anticipating further rise in prices, farmers and traders are are also withholding stocks in Maharashtra, the country's top onion producing state and are releasing limited quantities for sale in the wholesale market, they added.
As of now, less than 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 at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes in the year-ago period.
Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states in the country.
