In Chennai, daily arrival of onions rose to 1,400 tons from 1,120 tons earlier. The wholesale onion prices in Chennai declined to Rs 70 per kg from Rs 100 per kg within a week.

The severe shortage of onion supply at the Koyambedu wholesale market complex sent up the wholesale and retail prices in a matter of days. Though the prices have dropped, onion is still being sold for Rs 85 and above for a kg in the city of Chennai. This is striking a chord of the severe shortage and price hike that the state had faced last year.

It was also reported that the government imposed rules on hoarding onions which is also one of the reasons for the drop in onion price.