Onion prices surge 71pc at Koyambedu market, retail rates touch Rs 80 kg

CHENNAI: Onion prices have surged by 71 percent at the Koyambedu wholesale market, with Nashik onions now selling for up to Rs 60 per kg, compared with Rs 35 per kg in August. Retail prices have climbed further, with Nashik onions being sold for Rs 70-80 per kg.

Why are onion prices rising?

According to a Daily Thanthi report, the sharp rise in prices has been attributed to a decline in onion production in major supplying States, particularly Maharashtra, along with reduced arrivals at the Koyambedu market.

According to Koyambedu onion wholesaler Raghunath, the number of trucks arriving from Maharashtra has fallen significantly. The market normally receives around 35 trucks carrying nearly 30 tonnes of onions each day from the State. Currently, only 15-18 trucks are arriving.

The supply shortfall is being partly met by onions from Andhra Pradesh and Karnataka. Around 8-10 trucks, each with a capacity of 15 tonnes, are arriving from Andhra Pradesh, while another 10-12 trucks are coming from Karnataka every day.

Why has onion cultivation declined?

Mr. Raghunath said many farmers in Maharashtra had reduced onion cultivation after receiving low prices last year.

The shift from onion to sugarcane cultivation, amid increased demand for sugarcane for ethanol production, has also contributed to the decline in onion acreage, he said.

Nashik onions are generally harvested during February and March and can be stored for several months, supplying the market until September and October. However, reduced production has affected availability during the current period.

Onions grown in Andhra Pradesh and Karnataka have a shorter storage life. Farmers in these States have also reduced cultivation during periods when prices were considered inadequate, contributing to the current supply constraints.

When could onion prices ease?

Farmers, encouraged by the recent rise in prices, have begun cultivating fresh onion crops. The new crop is expected to be ready for harvest in about 90 days.

This could increase arrivals and ease prices towards the end of November and in December, traders said.

At Koyambedu on Tuesday (September 22), Nashik onions were sold wholesale at around Rs 60 per kg. Andhra Pradesh onions were priced at Rs 30-40 per kg, while Karnataka onions were sold at Rs 35-50 per kg. Sambar onions were priced at Rs 60-70 per kg.

In retail markets, Nashik onions were selling at Rs 70-80 per kg, while Andhra Pradesh and Karnataka onions were available for Rs 50-60 per kg. Sambar onions were being sold at around Rs 120 per kg.

Will the government resume subsidised onion sales?

The increase has also renewed expectations among consumers that the Tamil Nadu government could resume subsidised onion sales through ration shops.

Previously, when onions were selling for around Rs 50 per kg in the open market, the State government had arranged to sell them through ration shops at Rs 35 per kg. Onion sales through ration shops are not currently taking place.

Why are other vegetable prices rising?

Prices of several other vegetables have also increased at Koyambedu. Traders attributed the rise partly to increased demand for vegetables during Purattasi, when many people traditionally avoid non-vegetarian food, along with lower production and supply.

The wholesale prices recorded at Koyambedu were:

• Tomato — Rs 40 per kg

• Potato — Rs 35 per kg

• Carrot — Rs 50 per kg

• Beans — Rs 90 per kg

• Beetroot — Rs 50 per kg

• Chow-chow — Rs 30 per kg

• Radish — Rs 30 per kg

• Cabbage — Rs 25 per kg

• Cauliflower — Rs 25 per kg

• Okra — Rs 30 per kg

• Eggplant — Rs 30 per kg

• Bitter gourd — Rs 50 per kg

• Watermelon — Rs 25 per kg

• Zucchini — Rs 25 per kg

• Senna — Rs 40 per kg

• Drumstick — Rs 40 per kg

• Cucumber — Rs 40 per kg

• Chilli — Rs 30 per kg

• Ginger — Rs170 per kg