Wholesale price of onion fell by 17 per cent to Rs 18.21 per kg in the last two days at Nasik in Maharashtra, the major producing region in the country, due to low demand.
On February 1, the wholesale price stood at Rs 22 per kg at Lasalgoan in Nasik, Asia's largest wholesale market for onion, as per the data maintained by National Horticultural Research and Development Foundation (NHRDF).
Prices today fell to Rs 18.21 per kg in Nasik despite fall in supply of the key kitchen item. In Delhi too, wholesale prices have declined by Rs 4 per kg to Rs 21 per kg in the last few days.
Traders attributed the moderation in prices to low demand compared with previous few days. The buying was more last week in anticipation of further rise in prices.
Onion production is expected to be close to last year's level of 174 lakh tonnes even as total area under the crop is down by 10 per cent this year.
The government is a watching closely the price movement of onion both in wholesale and retail markets.