Onion prices up due to supply shortage, expected to increase further

CHENNAI: Onion prices have seen a marginal increase in the city due to a shortfall in supply caused by crop damage in Karnataka and Nasik. It has been sold for Rs 60 per kg at retail and Rs 50 per kg in the wholesale market on Friday. The wholesale traders predicted that the onion prices are expected to reach Rs 60 to Rs 70 for the next two weeks.

"The arrival of onions reduced to 50 trucks from 100 trucks for over a week. It led to an increase in the prices from Rs 30 to Rs 50 per kg. It would take at least 10 to 15 days for the supply to normalise at the market," said P Sukumaran, secretary of the Koyambedu Wholesale Merchants' Association.

Similarly, the recent monsoon spells due to cyclone Michaung that made landfall in Andhra Pradesh has led to crop damaged country vegetables such as brinjal, ladies finger and bitter gourd. It led to a surge in the prices by 10 percent.

"From January 15, the first crop cultivation will commence and there will be an increase in the production of perishable commodities. So, the prices are expected to decrease drastically from next month, added Sukumaran.

At present, tomatoes are sold for Rs 30 per kg, potatoes Rs 25 per kg, board beans Rs 50 to Rs 60 per kg, beans Rs 30 to Rs 35 per kg, peas Rs 40 to Rs 50 per kg. Due to less production and arrival of small onions prices are sold for Rs 90 to 100 per kg and drumsticks Rs 100 per kg. Watery vegetables including radish, cucumber and chow chow are sold for Rs 15 to Rs 20 per kg.

The vegetable prices at retail markets in the city witnessed a surge in 10 to 15 percent compared to the wholesale rates. However, the traders saw a brisk sale by at least 75 percent after the recent heavy rain.