Onion prices will fall during Diwali season as there is less demand for vegetables, including onions during this season. The price decline is also compounded by a bumper onion crop.
The onion harvest has just begun therefore there is an increase of arrivals during this period. During Diwali, people cook 'faral' (ready-to-eat edibles) which is also causing a decrease in demand.
The price of onions started to rise pre-monsoon season, however by August 25th the onion prices dropped by an average of Rs 860 per quintal due to fears of import and more arrivals.
The possible price decrease has not yet been disclosed for the Diwali season.