However, little changed when onion auctions resumed on Monday, after two days of a halt in auctions.
Prices fell by Rs 3 a kg to Rs 9.5 a kg in the Lasalgaon mandi. Just six weeks ago, consumers paid up to Rs 100 a kg for the commodity, owing to short supply and unexpected delay in harvesting.
Now, farmers who started harvesting the premature crop to avail of higher prices have started feeling the heat of the price fall.
“Traders in Pimpalgaon, a major mandi in Maharashtra, halted auctioning of onion lots due to falling prices.
“The commodity was quoted at a low of Rs 8.7 a kg in Pimpalgaon auctions.
“The mandi halted auctions on requests of farmers, amid fears of a further fall in prices. But farmers have few options, as prices of the commodity are falling across the country,” said Atul Shah, director, Agricultural Produce Market Committee, Pimpalgaon.
After an initial spurt, owing to a cut in the minimum export price, onion prices fell sharply on Monday, primarily because of increased arrivals of the new crop.
Onion prices had risen by Rs 0.5 a kg to close at Rs 12 a kg after the Ministry of Commerce had announced a 56 per cent cut in the MEP -- from $800 a tonne to $350 a tonne.
“In most importing markets, onion prices are quoted at $250
The only way to fix food inflation
Tesco needs to invest $55 mn in back-end if proposal okayed
8 lakh 'theplas', 2 crore emails for Modi's Mumbai rally
VOTE: Who should be the Congress's PM candidate?
Gold smuggling is rampant; trend likely to continue