Finance Minister Pranab Mukherjee on Sunday said prices of onions have come down from the sky-high levels seen earlier this week and the situation will be in control soon, as the government is taking all steps.
"Export of onion has been banned and the import duty has been made zero, besides some imported onions are reaching the market. The prices have come down," he told reporters at his residence here.
"Some fruits, vegetables and milk have an element of seasonality in them and sometimes in the market, there is gap in the demand and supply of products, which leads to the increase in their prices... Ultimately, it depends on the series of the core chain," Mr Mukherjee said.
Onion prices had jumped to as high as Rs 85 per kg in retail markets earlier this week, due to a severe supply crisis. This was attributed to the damage suffered by crops in Maharashtra, the main producing state, on account of unseasonal rains, though some quarters have alleged that hoarding by traders was responsible.