Onion prices surge in Chennai; rates may climb to Rs 60/kg

CHENNAI: The price of big onions has witnessed a sharp rise in Chennai following a drop in arrivals from Maharashtra, with traders warning that retail prices could increase further in the coming days if supplies remain affected.

Heavy rains hit onion supply

Large onions are primarily supplied to markets across India from Maharashtra and Karnataka. However, heavy rainfall in Maharashtra has reportedly affected onion cultivation, leading to a decline in arrivals, said a Daily Thanthi report.

At the Koyambedu Wholesale Market in Chennai, where around 60 to 65 truckloads of onions usually arrive every day from Nashik, Pune, Solapur and other parts of Maharashtra, the daily arrivals have now dropped to 30 to 35 truckloads.

Prices jump by Rs 10 per kg

Owing to the reduced supply, the wholesale price of big onions at Koyambedu has increased by around Rs 10 per kg over the past few days.

According to Koyambedu Small Wholesale Traders' Welfare Association president Muthukumar, onions that were selling at Rs 20-25 per kg are now priced at Rs 30-35 per kg in the wholesale market, while retail prices are slightly higher.

Further increase likely; tomato prices remain stable

Traders said onion prices could continue to rise if arrivals do not improve, with wholesale rates potentially touching Rs 50-60 per kg in the coming days. They noted that such seasonal price fluctuations are common during the southwest monsoon, when rains affect harvesting and transportation.

Meanwhile, tomato prices have remained relatively low due to higher arrivals. Native tomatoes are being sold at Rs 10-20 per kg, while hybrid tomatoes are priced between Rs 30 and Rs 50 per kg. Prices of most other vegetables have remained largely unchanged.