Drought is one of the major reasons for drop in onion production. Hoarding has also caused prices to shoot up, an onion trader said
Onion prices have been on the rise over the past week due to higher demand and inadequate supply.
Observers Saturday said the prices are likely to climb further as the supply at the city markets is likely to go down due poor production owing to bad weather, diversion of stock to other states and export of the vegetable.
On Saturday, price of onion in retail market went up from Rs 25 to Rs 35 per kg as compared to Rs 15 to Rs 18 per kg a fortnight ago. Wholesale traders at the Gultekdi market projected that the price may climb higher by as much as 50 per cent in a month.
Data with the Agriculture Produce Market Committee (APMC) shows that the wholesale market received 25, 695 quintals of onion on Friday. The average price was Rs 1,800 to Rs 2,000 per month.
Lower rain fall in the onion producing belt has hit production this year. “Drought is one of the major reasons for drop in production. Hoarding has also caused prices to shoot up,” an onion trader said.
“The arrival of Rangda onion has begun to flood the market. Hence the arrival has seen a marginal rise as compared to last month. Also quality of the produce is good.
But due to export and increased demand within and outside the state has resulted into inadequate supply at the local markets,” added Bhosle.
Nikhil Mishra, a resident of Shivajinagar said, “In the last few weeks, the prices have gone up from Rs 10 per kilo to Rs 25 - Rs 30 per kilo. In such a case the we have to cut down our expenditure on other vegetables as the we can’t do without onion.”
Chennai, Feb 4 (PTI) The following are the wholesale prices of vegetables at Koyambedu market here today.
MIN/MAX (PER KG)