Onion prices at Lasalgoan near Maharashtra, Asia's biggest wholesale market for onions, has doubled to Rs 40 per kg from the year-ago period due to sluggish supply of the crop.
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.
Prices are rising due to the production fall and sluggish supply of stored onions meant for meeting the demand during the lean period of July-September.
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.
