Wholesale prices of onion on Tuesday fell by as much as Rs 12 per kg at the Lasalgaon Mandi in Nashik (Maharashtra) to Rs 30 per kg, which generally sets the price trend across the country. (Agencies)
With the arrival of kharif crop, supplies have almost doubled in the markets which have pushed the prices down across the country, traders said.
However, the impact of fall in wholesale prices at the retail level will take some time as retailers are cautious and will reduce the rates after the wholesale rates settle down, traders added.
"There has been much volatility in the market in the past month or so and this is the reason retailers are cautious on reducing the prices," said National Horticultural Research and Development Foundation (NHRDF) Director R P Gupta.
Retail prices would come down in the coming days as supply would be smooth, he added.
Onion prices had skyrocketed to Rs 80 per kg across the country last month, forcing the Centre to impose the minimum export price (MEP) to curb shipments. Imports have also taken place from Afghanistan by the private traders.
"Retailers had purchased onions at high prices so they are reluctant to reduce onion prices. Retail prices will come down after the wholesale prices settle down," said Onion Merchant Traders Association President Surendra Budhiraj.
Agriculture Minister Sharad Pawar and Food Minister K V Thomas had expressed confidence that the prices would ease from September-end with arrival of new crops.
Wholesale prices of onion on Tuesday fell by as much as Rs 12 per kg at the Lasalgaon Mandi in Nashik (Maharashtra) to Rs 30 per kg, which generally sets the price trend across the country.