New Delhi: The wholesale prices of onions have dropped by up to Rs. 10 per kg in key markets like Mumbai, Chennai, and Delhi. Prices came down after Government imposed stock holding limits to check hoarding.
Under stock holding limits, traders cannot stock products beyond the stated limit. The government has also released onions in the retail markets and key mandis from its buffer stock to provide some relief to the consumers from the price hike.
Onion prices had soared to over Rs 100 a kg in certain markets.
The prices showed a declining trend in the producing areas. For example, Asia's largest onion wholesale market, Lasalgaon in Maharashtra saw the prices drop by Rs. 5 per kg in just a day after the government's order on stock limits.
In the consuming markets, the wholesale prices in Chennai reduced to Rs. 66 per kg from Rs. 76 per kg in one day. Similarly, in other cities like Mumbai, Bengaluru and Bhopal, the rates fell by Rs 5-6 per kg from Rs 70 per kg, Rs 64 per kg and 40 per kg, respectively, in just one day.
Following the improvement in daily arrival of onions, the prices dropped in these consuming markets. In Delhi's Azadpur mandi, the daily arrival of onions increased to 530 tonnes. In Mumbai, it increased from 885 tonnes to 1560 tonnes. However, few cities like Pune, Kolkata, Lucknow and few others are yet to witness the increase in the daily arrivals.
The government had invoked the Essential Commodities Amendment Act on October 23 and imposed stock limits of 2 tonnes for retailers and 25 tonnes for wholesalers till December 31. This was done in order to cool down the prices in some retail markets where the prices have touched Rs. 100 per kg.