The prices of onions at Lasalgaon have started rising again due to supply concerns as the old stock has been exhausted, while the fresh kharif crop this year is expected to be 25-30 percent lower due to drought situation in the country’s top two onion growing states -- Maharashtra and Karnataka. Lasalgaon in Maharashtra is Asia’s biggest wholesale market for the staple.
The prices of onion have fell to as low as Rs 25 per kg on October 16 at Lasalgaon after touching the record of Rs 57 per kg in August. This decline was after the Centre took several steps including hike in minimum export price and imports to boost domestic supply. The prices have once again started rising beyond Rs 30 per kg in the last one week and are now ruling at Rs 32 per kg at Lasalgaon.
The production of onion was 18.73 million tonnes in 2014-15 crop year (July-June). Kharif onion output contributes 20 percent to the overall production.