Onions did not get much cheaper in most markets since Thursday, but consumers should be relieved that retail-level prices have firmly come off the peaks seen a week ago. Kolkata was one of the few markets where prices fell by ₹20 a kilo, possibly due to the intervention by the state government to sell the bulbs at a subsided price. Prices in markets in Kerala and Tamil Nadu continued to moderate but there was no change in prices in Mayabunder (Andaman). The minimum price of the bulb stayed steady at ₹50 a kilo in cities such as Gwalior and Sagar.
The onion price inflation was a result of a shortfall in supply . Production fell about 23 per cent lower till November, due to extended monsoon rains. With fresh domestic production and imports now coming into the market, prices are correcting.
Tamil Nadu and Kerala saw prices of onion fall the most since last Friday. In Ramanathapuram, prices fell ₹60, in Chennai by ₹57 and in Dindigul by ₹50 since last Friday. Similarly, prices of the bulb fell by ₹40-50 in Palakkad, Kozhikode, Thiruvanthapuram and Wayanad.
However, in Ambikapur, Chhattisgarh, prices spurted suddenly from ₹50 a kilo to ₹120 a kilo. Raiganj in West Bengal too saw prices climb by ₹40 since last Friday. Retail prices have also climbed by ₹30 in the temple town of Tirupathi.