India’s rocketing onion prices have cooled off coming into February, fetching about Rs35-40 per kg in retail markets this week after hitting a record high of Rs85 per kg in late December.
Prices have begun to fall on the back of arrivals into the market from the new onion season.
The increase in onion supplies will likely cause sighs of relief throughout India's government, which had been under significant pressure to reduce prices of the staple vegetable.
During January, India's government had been subsidising onions in New Delhi, a project they wrapped up on Monday in response to the price decline.
The record-high onion prices had not only caused friction within India, but also with Pakistan. The country halted onion exports to India last month to stop price rises on its own domestic market, sparking a row between the two governments.
India itself suspended all onion exports in mid-December in a bid to curb the rising prices.
The low onion supply had been caused by unseasonal rains in Maharashtra, Gujarat, and the country’s southern states.
