CHENNAI: Onion prices have climbed again at Chennai's Koyambedu wholesale market, with premium-quality Nashik onions selling at Rs 60 per kg on Saturday, up from Rs 46 on October 20, according to a Daily Thanthi report.
Onion prices have been fluctuating over the past few months. The price of first-grade Nashik onions stood at Rs 35 per kg on August 7 before rising to Rs 50 on August 23. It further increased to Rs 60 on September 22 before gradually declining to Rs 46 on October 20.
Despite the State government's intervention to make onions available at affordable prices through urban ration shops, wholesale prices have continued to fluctuate. The government has been procuring onions from Nashik through the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers' Federation (NCCF), selling them at Rs 35 per kg, with a limit of one kg per ration card.
At the Koyambedu market, small Andhra onions were sold at Rs 36 per kg and larger varieties at Rs 42. Small Karnataka onions were priced at Rs 38 per kg, while larger ones touched Rs 60. Smaller Nashik onions were available at Rs 40 per kg.
Explaining the price increase, Koyambedu wholesale onion trader Raghunath said farmers in northern states had not brought sufficient quantities of onions to markets during the Navaratri festival, resulting in reduced arrivals at Koyambedu.
He said onion supplies could improve in the coming days as traders from northern states are likely to clear their existing stocks ahead of Deepavali.
Prices may ease slightly from Monday or Tuesday as arrivals increase. However, demand ahead of Deepavali on November 8 could push onion prices up again during the first week of November.
Raghunath added that fresh onion harvesting is expected after Deepavali, which could significantly improve supplies and bring down prices.
Meanwhile, the rise in wholesale prices has also affected retail markets across Chennai, where onions are being sold at Rs 60 to Rs 80 per kg.