Maharashtra: Onion prices fall in Asia's biggest market on improved supply

Onion prices at Lasalgaon in Maharashtra, Asia's biggest market for the key kitchen staple, on Thursday declined to Rs 25/kg from the level of 30-35/kg last week on improved supplies.

Lasalgaon mandi sends price signal for rest of the country and therefore onion traders keep a track of this market closely.

As per the official data, onion arrivals have risen in last 4-5 trading days. The arrivals at Lasalgaon mandi on Thursday stood at 22,000 quintal, much higher than 8,000 quintal on November 22.

The improved supplies in other growing states - Rajasthan and Madhya Pradesh - have also put downward pressure on prices at Lasalgaon.

The new kharif onion crop is underway although the overall output is likely to be lower this year. Meanwhile, the government has taken measures to boost local supply and control prices.

Exports have been curbed by imposing minimum floor price of USD 850 per tonne. State-owned MMTC has floated a tender for import of 2,000 tonnes, while Nafed and SFAC has started sourcing 14,000 tonnes locally for distribution in consuming areas.