NEW DELHI, Aug 27 (Bernama) -- Onion retail prices in the national capital remained high Monday at Rs70 (US$1.09) per kg due to lower supply in the wholesale market.

Traders said wholesale prices of onions are selling at between Rs45 to 50 (US$0.70 to US$0.78) per kg due to lower supply from producing regions in the last few days, Press Trust of India (PTI) reported.

"Supply continues to be below normal resulting in high prices," Onion Merchant Traders Association president Surendra Budhiraj said.

Street vendors charge between Rs55 (US$0.86) and Rs70 (US$1.09) for 1kg of onion in Delhi depending on the locality and quality of the bulb, a key ingredient in most food items.

In a bid to ease high onion prices -- a politically sensitive issue -- cooperative major Nafed has been tasked with importing onions to boost domestic supplies.

Retailer Mother Dairy is selling onions at about Rs50 (US$0.78) per kg through its 400 Safal outlets in the National Capital Region (NCR). Nafed is offering a price of Rs40 (US$0.62) per kg through its five outlets and mobile vans.

At Lasalgaon in Nashik district of Maharashtra, a major producing region, prices have risen by Rs3 (US$0.05) per kg to Rs43 (US$0.67) per kg today.

"Prices will remain high as farmers and traders are going to keep supplies under stress to maintain high level of onion prices," said an official from the National Horticulture Research and Development Foundation (NHRDF).

-- BERNAMA



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