Onion prices surged to Rs 80/kg; likely to reach Rs 100 this month

CHENNAI: Onion prices have seen a steep rise in a week at both retail and wholesale markets in the city due to a shortfall in the perishable commodity caused by crop damage in Karnataka and Nasik. It has been sold for Rs 80 per kg at retail and Rs 65 per kg in wholesale market on Wednesday. Traders predict that the onion rates are expected to further increase and will reach Rs 100 per kg in November.

For over two years, the onion prices remained stable and sold for Rs 30 to Rs 40 per kg due to a steady inflow of products from the neighboring states. However, this year the farmers at Karnakata and Nasik did not soar adequate onions as the prices remained steady which led to a shortage in supply. At present, the Koyambedu wholesale market receives 30 to 40 vehicles (600 to 800 tonnes) against its usual supply of 80 vehicles (1,600 tonnes).

“There was intense rainfall at Karnataka and Nasik that damaged crop cultivation and now it has led to a supply shortfall. The neighboring states – Andhra Pradesh and Telangana have completely stopped onion production recently which has worsened the situation in the city. Within two weeks the prices of onions doubled from Rs 30 per kg to Rs 65 per kg. The rates are likely to further increase to Rs 100 per kg or remain stable throughout this month,” P Sukumaran, secretary of Koyambedu Wholesale Merchants’ Association.

Owing to supply shortages, Karnataka and Nasik have started cultivating onions. The farmers are expected to begin to harvest and the prices would reduce after December 15 in the city. Pointing out that the prices might surge to Rs 100 per kg in the coming days; the traders stated that the supply would arrive from Egypt and Turkey which would ease the situation in the city.

In addition, as the northeast monsoon started over Tamil Nadu and if the neighboring states witness heavy rainfall this month, the crops would be damaged. It might result in to further decrease in onion supply to the market and prices will shoot up.

The retail traders in the city lamented that it has been only two months since tomato prices were reduced. The sudden surge in onion rates would drastically impact the sales. “At present, the onions are sold for Rs 80 to Rs 85 per kg and the quantity purchased among the customers has reduced. We hope that the government will take steps to increase the onion supply,” said T Kannan, a retail vendor at Mambalam.