The onion prices remained steady for the second day at 40 to 50 rupees a kilo in the retail markets of all the metros except Chennai. In Chennai, it soared by 20 rupees per kilo due to lack of adequate supply. Delhi too saw wholesale rate of onion increase by about three rupees a kilo in Azadpur mandi.

Talking to reporters, Azadpur market-based Onion Merchants Association General Secretary Rajendra Sharma attributed the reason to the substantial fall in number of vehicles arriving in the market today from Rajasthan, Maharashtra, Gujarat and Madhya Pradesh. The wholesale rate at Azadpur ruled at 12 to 40 rupees per kilo.

The state-run outlets in Delhi, such as Nafed, Kendriya Bhandar and NCCF were selling the edible kitchen bulb at a concessional rate of 35 rupees a kilo, while Mother Dairy was vending onions at 40 rupees per kilo.

The prices of tomato and garlic, however, fell sharply in Kolkata and Mumbai although they remained unchanged in Delhi and Chennai. Tomato price fell by 15 and garlic by 100 rupees in Kolkata and Mumbai. It, however, they remained unchanged in Delhi and Chennai with tomato at 40 to 50 rupees per kilo and garlic at 250 to 300 rupees per kilo.

According to Agriculture ministry sources in New Delhi , a team of Agriculture ministry officials reached Nashik today to assess the extent of damage to the onion crop due to unseasonal rains in November-December this year. This area is known as the hub of onion cultivation in the country.

Our correspondent reports, onion had shot up to 70 to 80 rupees per kilo in the last fortnight, prompting government to take urgent action including a ban on exports and abolition of import duty. Many state governments facilitated sale of onion at a concessional price.