Wholesale onion prices today fell further by about Rs 5 per kg in the national capital on increased arrival of the commodity from Karantaka, but retail rates continue to rule high at Rs 70 a kg.
The average price of onion declined to Rs 48.77 per kg from Rs 53.39 per kg yesterday at Azadpur mandi, according to the data compiled by the National Horticultural Research and Development Foundation (NHRDF).
The arrival of the edible bulb in the mandi went up to 9,700 quintals today from 8,000 quintals yesterday.
Traders attributed the fall in prices to arrival of new crops from Karnataka and also to imports from Afghanistan.
"Prices of onion have dropped for the third day in a row at Azadpur. Onions are available at Rs 38-53 per kg in the mandi today depending on the quality. New crops have started coming from Karnataka," Azadpur Mandi Traders Association General Secretary Rajendra Sharma said.
The state government is selling onions at two rates -- Rs 47 and Rs 55 per kg-- depending on the quality of the edible bulb in different parts of the national capital through more than 100 mobile vans.
Punjab-based traders have started importing onion from Afghanistan through Attari-Wagah land route in Amritsar.
While 400 tonnes of onion have already arrived from Afghanistan, traders said about 2,000 more tonnes would reach in the next 7-10 days.
Besides imports by private trade, the government's decision to hike the minimum export price (MEP) of onions to USD 900 per tonne from USD 650 per tonne earlier this week has also led to fall in prices.
Yesterday, Food Minister K V Thomas had said that the Maharashtra government had promised to supply onions on priority basis to Delhi to provide relief to people.
Traders said retail prices in Delhi are set decline soon with increased supplies from Afghanistan, Karnataka, Maharashatra and also on account of curbs on exports.
Maharashtra and Karnataka are the leading onion producing states in the in the country.
