Onion prices shoot up to Rs 50 per kg in Chennai's Koyambedu market, retail costs higher

CHENNAI: Onion prices at the Koyambedu wholesale vegetable market are hovering around Rs 50 a kilogram and traders expect them to dip only when the new crop arrives possibly by November end.

S Chandran, Market Management Committee Licensed Merchants Association President and Anaithu Sangankalin Kootamaippu general secretary, told The New Indian Express that onion prices in the Koyambedu market crossed Rs 40 about 10 days ago as arrivals from Maharashtra were hit, with many farmers exporting onions.

After the ban by the Centre on export of onions, the prices are slowly being stabilised, he said. "Usually at this time, the prices are high and we are expecting them to remain at around Rs 40 to Rs 50 per kilogram till fresh crops come in," said Chandran.

Bhaskar, an onion trader, said the prices have gone up due to lack of supplies in the market. "With only a single truckload of onions per shop allowed by the Chennai Metropolitan Development Authority, there is a shortage. Hence the prices have gone up," he said.

Interestingly, the prices of onions in most retail shops across the city have shot up to Rs 60 per kilogram. When Chandran was asked why retail shops have been charging high prices for vegetables, he said the retailers fix their own price and market wholesale traders could do little.

Many vegetables like ladies finger, carrots, beans and others have become costlier for Chennaites. "There is no price control on vegetables. Many retail shops have hiked the prices steeply," said Bharati, a housewife.

She said that the government should come out with a mechanism so that these artificial prices are contained. "With many people having taken pay cuts and many losing their jobs, it will be difficult for them to buy vegetables," she added. Chandran said nearly all the vegetables are priced below Rs 30 per kilogram in the wholesale market except a few like carrots, onions and beans.

Last year, the prices of onions nearly touched Rs 200 per kilogram due to non-availability of the crop following floods in Maharashtra.