With the steep rise in arrivals and absence of exports, the price of shallot crashed in the wholesale market here on Wednesday.
The onions are famous and has huge market in Dindigul, Oddanchatram in Tamil Nadu and among other cities including Madurai, Pollachi, Tiruchi and Coimbatore.
Normally, some of the big merchants here handled exports directly to countries like Malaysia, Singapore, Indonesia, Sri Lanka and Thailand at regular intervals. Hence, the market here was widely known to influence the price.
With huge potential for domestic movement of onions to destinations including Kerala, the local vendors from the neighbouring State had dealings. Hence, regular movement of onions would be transported at least thrice a week, merchants said.
In the absence of exports for the last fortnight or so, prices had been hovering in a low-key and there were not much takers locally too. In such a scenario, the fresh arrival of nearly 5,000 bags of shallots from towns like Thalavadi, Eriodu, Sengurichi, Gopalpatti and Gujiliamparai had stunned the vendors.
As a result, the price of onions, which was revolving around Rs 30 to 50 per kg till last month, had suddenly fallen to Rs 15 per kg, said Marimuthu, a wholesale merchant.
Unless exports recommenced and the stocks here were cleared, the price may not increase, but only continue to fall in the coming days also. The retail markets and in uzhavar sandhais, the selling price was around Rs 20 per kg. It is likely to fall further, according to an agriculture marketing officer here.