Prices of the kitchen staple in Azadpur Mandi, Asia's largest wholesale market, were ruling at Rs 60 per kg today as supplies were below normal.
"Today, there was a marginal increase in the supplies of onion at 9,500 quintals, but that was insufficient to bring down the prices," Onion Merchant Traders Association president Surendra Budhiraj said.
He said the prices are likely to remain at this level for the next 10-15 days as most of the stored quantities from last year's crop have been exhausted and fresh supplies from South India are yet to reach the consuming states.
Traders also attributed the rise in wholesale onion prices to increase in prices of the bulb in Lasalgaon Mandi in Nashik, which sets the price trend across the country.
At Mother Dairy outlets in the city, onions are being sold at Rs 65-67 per kg, while local vendors are selling it at 70-80 per kg, depending upon the quality and location.
According to National Horticultural Research and Development Foundation data, prices of the politically sensitive commodity at Lasalgaon in Nashik, slightly declined from Rs 58 per kg to Rs 56 per kg on Thursday.
Meanwhile, the consumer affairs ministry had said in the status report on onions that prices are under pressure as 90 per cent of stored onions from last year's crop are exhausted and only 3-4 lakh tonnes are available for consumption.
Wholesale Price Index (WPI) based inflation had risen for the third straight month to 6.1 per cent in August, driven by a whopping 244.62 per cent jump in onion prices on an annual basis.
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