Rains, less local production in Perambalur, hoarding, cause price of shallots to soar in state

Despite Perambalur district in the region being the largest producer of shallots in the state (farmers from Alanthur and Ladapuram localities used to cultivate throughout the year) the production would cater to the needs in a normal way only when shallots are imported from other states.

With the festival season fast approaching, sources claimed that a few traders have started to hoard the product to show an artificial demand and hiked the price of the shallots.

According to sources, the shallots price had reached Rs 100 in the wholesale market in Tiruchy a couple of days back when the arrival of shallots from the other states had stopped owing to heavy rains.

Making hay at this time of demand, the retailers have started to sell shallots at Rs 130 per kg in Tiruchy. The traders said that the short supply and heavy demand was the reason for the shooting up of price.

They also predicted that the price would be normalised in the third week of October when the local supply from Perambalur would pour in.

While V Narayanan, a small onion farmer from Perambalur said, the rainfall in the onion cultivated areas like Ladapuram, Ammapalayam, Perambalur, Veppanthattai, and Ettamalai has been inadequate and so they have been waiting for the onset of the north east monsoon. Meanwhile, the traders from the region claim that the flow of product is too poor as the local producers have just started cultivation. “Still we have been trying to source shallots for the upcoming festival season but there is no sign of managing to get it and so the prices would be the same for at least two weeks from now,” said Ganesan, a trader from Gandhi Market.

Ganesan said that the customers have started to replace shallots with big onions that are sold between Rs 60 and 70.