Onion prices begin to escalate again in Chennai within a gap of one month

Onion prices in Chennai soar due to dip in harvest in producing states; other vegetables, such as brinjal & bitter gourd, also pricier.

A dip in harvest in States growing onion has pushed its prices up in Chennai and the cost of onion crossed ₹50 per kg in the wholesale market.

Wholesale traders said the Koyambedu wholesale market received only 50% of the daily stock of onions on Tuesday. The market normally received most of its onion stock from Maharashtra, Karnataka and Telangana. The widening gap between demand and supply had hiked the onion prices in the city.

The onion price had gone up to ₹62 a kg in retail market. A few other vegetables, such as brinjal and bitter gourd too, have become pricier post Cyclone. It may be recalled that the cost of onions had touched ₹100 a kg in November and the State government had sold onions at a subsidised rate in its Pannai Pasumai outlets to reduce consumers’ burden.

P. Sukumar, treasurer, Koyambedu Vegetables, Fruits and Flowers Merchants’ Association, said, there may be a further rise in the cost of onions and prices may drop only after Pongal festival. Small onions too were expensive and were priced at ₹80 to ₹90 per kg.

Normally, vegetables cost about 10% more in December as fresh crops arrive only in January. But some vegetable varieties like ridge gourd and ladies finger were costly by 25% owing to downpour in Andhra Pradesh that affected the harvest, he said.

One kg of brinjal was priced at ₹60 to ₹70 in the wholesale market. However, some of the seasonal vegetables like green peas were available at a cheaper rate. The situation may stabilise by mid-January, traders noted.