Onion prices in Chennai likely to remain high for another month due to shortage in supply

Onion prices surge in Koyambedu market due to low arrivals, expected to stabilize by January with fresh harvests.

The price of onions, one of the staple ingredients in Indian kitchens, is likely to remain elevated for another month in the city owing to low arrivals.

After the price of tomatoes skyrocketed last month, onion prices have surged steadily now in the Koyambedu Wholesale Market Complex (KWMC). A kilogram of onions was priced between ₹40 and ₹70 depending on the quality in the market on Saturday. While the retail price of many other vegetables remained stable this month, onions were being sold for ₹100-₹110 a kg, said merchants at the Koyambedu market.

On Saturday, wholesale traders said there was a marginal dip in the price of onion of ₹5 per kg compared to the previous day as the KWMC received a few additional truckloads of produce from Telangana and Karnataka.

P. Sukumar, treasurer, Koyambedu Vegetables, Fruits, and Flowers Merchants’ Association, said normally, the market received 80 to 90 truckloads of onions daily, but that had declined to 40 to 45 now. This has dipped steadily since September due to a fall in production.

This year, the price of onion has risen above ₹100 in the retail market after 2022. There may be a slight decrease by next week as the market is expected to receive more produce from neighbouring States. However, the monsoon may affect onion production. Carrots, small onions, and beetroots are other vegetables whose prices have increased in the wholesale market, Mr. Sukumar added.

V.R. Soundararajan, president, Koyambedu Onion Wholesale Traders’ Association, said labour shortage in Maharashtra, the largest onion-producing State in the country, was one of the reasons for the shortfall in supply. Some of the stock was now being brought in through trains instead of trucks to save transportation cost. While there may not be a further rise, wholesale merchants expect onions price to stabilise by January with the arrival of fresh harvests.