Onions may reach up to Rs 60 -70 per kg as supply falls short

CHENNAI: Following tomatoes, the prices of onions increased from Rs 25 to Rs 40 per kg at wholesale markets due to shortage in supplies from neighbouring states on Wednesday.

Traders said that the crops were damaged due to intense spells, and the prices will reach up to Rs 60 to Rs 70 per kg in the coming days. On the other hand, the tomato rate has decreased to Rs 50 per kg at wholesale, whereas retail shops sell for Rs 70 per kg.

Based on the storage and harvesting of onions, the traders and farmers indicated the prices will not surge. The highest prices would be sold for Rs 30 per kg this year. However, due to heavy rain in Nashik, Ballari and Telangana, the onion crops were damaged and resulted in supply disruption to Tamil Nadu.

"Several places in north India including Haryana, Punjab, Nashik, and Uttar Pradesh witnessed intense rain and impacted the onion storage and harvesting. In the coming days, the prices are expected to further increase up to Rs 60 to Rs 70 per kg at the wholesale market. But, if the rain continues during the southwest monsoon the rates will shoot up drastically, " P Sukumaran, secretary of Koyambedu Wholesale Merchants' Association said.

During northeast monsoon in 2019, due to supply shortage onion prices surged to Rs 150 per kg. For the past two years, the prices of onions did not witness an abnormal surge as adequate supply was stocked in Maharashtra, Karnataka and Telangana. The retail vendors lamented that the onion prices are expected to reach up to Rs 90 per kg in the city, which would impact their sale.

"Almost after two months, the prices of tomatoes decreased to Rs 70 per kg, and nearly 50 percent of the sale was affected. Similar situation is likely to occur in the next few days due to a surge in onion rates. We urge the state government to take steps before the prices cross Rs 100 per kg, " said A Soundar, a retail vendor at Kilpauk.