Onion production is estimated to decline by four per cent to 168.17 lakh tonnes in 2012-13, the Parliament was informed on Tuesday.
The average wholesale price of onion in major markets ranges from Rs 936 to Rs 1,747 per quintal.
"As per present estimates, production of onion during 2012-13 is 168.17 lakh tonnes as against 175.11 lakh tonnes last year," Minister of State for Agriculture Tariq Anwar said in a written reply to the Lok Sabha.
The prices of onion are governed by market forces of demand and supply and depend on a host of factors, which influence production and arrivals in the market, he added.
According to the data, onion output in Maharashtra, the largest producing state, is estimated to decline to 45.46 lakh tonnes in 2012-13 from 56.38 lakh tonnes in the previous year.
However, production in Karnataka and Madhya Pradesh are likely to be higher this year.
Onion production in Karnataka is estimated at 25.23 lakh tonnes in 2012-13 against 24.51 lakh tonnes in the previous year, while output in MP is set to increase to 21.53 lakh tonnes from 19.57 lakh tonnes in the review period.
Production of onion in Bihar is also expected to rise marginally to 12.8 lakh tonnes in 2012-13 from 12.36 lakh tonnes in the previous year.
Gujarat's onion production would remain flat at 15.62 lakh tonnes.