CHENNAI: Retail prices of onion have almost doubled across the city in the past two weeks as the supply of onions from Maharashtra and Andhra Pradesh have taken a huge hit.
Vendors in Koyambedu central market said the wholesale rate of onions were Rs 50 per kg on Sunday. The rates at retail stores have touched almost Rs 60 per kg.
Meanwhile, buyers at the market were shocked by the sudden rise in prices and complained that they received only stored onions which were stocked by traders and sold at unusually high prices as the supply has fallen and is expected to stabilise only in November.
The city largely depends on Nasik in Maharahstra, Andrha Pradesh and Karnataka for onion supply. Due to excessive rains, incoming trucks have fallen from 40 to 25. Merely 15 trucks from Andhra Pradesh reached Koyambedu on Friday.
“Heavy rains wreaked havoc in more than 2,000 acre of onion producing regions in Maharashtra. As a result, the wholesale rate at procurement points itself touched a new high. In the last 30 years, the wholesale price has never raised above Rs 20 per kg,” said V R Soundararajan, Koyambedu Wholesale Traders Association president. Transportation cost also increased eventually and the wholesale rate touched Rs 50 per kg this week.
Prices are expected to go up further as fresh supply (summer/kharif crops) is expected to reach city markets only in November. “At present, only stored onions are sold in markets,” said Harish, who owns a retail store at Nanganallur.
“Usually uncut onion plants are stored in temporary sheds and only branches are cut before loading them in trucks to keep them fresh. This is nothing new,” he added.
Consumers at hotels have not felt the heat yet as hoteliers have been compromising on their profit margins. “Increasing the cost of food items due to this will deter customers. So it is better to bear the additional cost and wait for the prices to subside,” said Sundarapandian, owner of Hotel Vasantham at Madipakkam.
Vendors in Koyambedu central market said the wholesale rate of onions were Rs 50 per kg on Sunday. The rates at retail stores have touched almost Rs 60 per kg.
Meanwhile, buyers at the market were shocked by the sudden rise in prices and complained that they received only stored onions which were stocked by traders and sold at unusually high prices as the supply has fallen and is expected to stabilise only in November.
The city largely depends on Nasik in Maharahstra, Andrha Pradesh and Karnataka for onion supply. Due to excessive rains, incoming trucks have fallen from 40 to 25. Merely 15 trucks from Andhra Pradesh reached Koyambedu on Friday.
“Heavy rains wreaked havoc in more than 2,000 acre of onion producing regions in Maharashtra. As a result, the wholesale rate at procurement points itself touched a new high. In the last 30 years, the wholesale price has never raised above Rs 20 per kg,” said V R Soundararajan, Koyambedu Wholesale Traders Association president. Transportation cost also increased eventually and the wholesale rate touched Rs 50 per kg this week.
Prices are expected to go up further as fresh supply (summer/kharif crops) is expected to reach city markets only in November. “At present, only stored onions are sold in markets,” said Harish, who owns a retail store at Nanganallur.
“Usually uncut onion plants are stored in temporary sheds and only branches are cut before loading them in trucks to keep them fresh. This is nothing new,” he added.
Consumers at hotels have not felt the heat yet as hoteliers have been compromising on their profit margins. “Increasing the cost of food items due to this will deter customers. So it is better to bear the additional cost and wait for the prices to subside,” said Sundarapandian, owner of Hotel Vasantham at Madipakkam.
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