With the increasing arrivals of late kharif crops, respite for consumers from the high onion prices seems to be on its away.

According to a trader from Nashik, the hub of country?s onion trade, wholesale prices of the key vegetable dropped on Friday to Rs 2,500 per quintal against Rs 3,000 per quintal prevailed a week back.

This implies that the retail prices of onion which crossed as high as Rs 80 per kg in many metros few weeks back because of destruction of kharif crops has started to decline in many key cities. Although the retail prices are as higher level in comparison to last year, the prices are expected to fall further in the first week of February with rise in late kharif crops into the market from the key growing states of Maharashtra, Gujarat, Rajasthan and southern states.

The retail prices in many cities such as Delhi, Kolkata, Hyderabad and Chennai have declined significantly during last one month. The data from department of consumer affairs indicate that prices of onion in Delhi and Chennai have declined to Rs 42 and Rs 44 per kg respectively on Friday from Rs 64 and Rs 60 prevailed a month back. ?We are expecting a better late kharif crop which would augment supplies during next few weeks,? C B Holkar, managing director, National Horticulture Research and Development Foundation (NHDRF) told FE.

According to the latest crop prospect reports by NHDRF, late kharif onion growing states are Maharashtra, Gujarat, Madhya Pradesh and Orissa where harvesting of late kharif crop started and will continue till mid of March 2011. ?Present crop condition is medium to good. The harvesting of late kharif crop in Maharashtra and Gujarat expected to be in full swing during February,? the report said.

Onion prices just sky rocketed on December 20 to the all time record of Rs 70-85 per kg in the retail markets in major cities as a result of damage to kharif crops in Maharashtra due of rains. The high price forced the government to ban exports and placed orders of imports from Pakistan.

On Thursday cooperative majors Nafed and NCCF lowered retail onion prices in Delhi by up to Rs 5 at Rs 30-32 a kg but open market prices continued to rule high across the country. Nafed, which had intervened to provide relief to consumers by selling onions at subsidised rate of Rs 35 per kg, lowered the price from Thursday to Rs 30/kg.

The government has taken several measures to rein in prices of the key agricultural commodity. These included ban on exports and abolition of import duty.