Onion prices jump in Chennai as Maharashtra supply drops, traders warn of further rise

Chennai, July 11 (IANS) The price of big onions has risen sharply in Chennai following a steep decline in arrivals from Maharashtra, with traders warning that retail rates could climb further over the coming days if supplies do not improve.

Wholesale traders at the Koyambedu Wholesale Market attributed the increase to heavy rainfall in Maharashtra, which has disrupted onion cultivation and affected the movement of produce to key markets across the country.

Maharashtra, along with Karnataka, is one of the principal suppliers of large onions to Tamil Nadu and several other states.

According to traders, Koyambedu market normally receives between 60 and 65 truckloads of onions every day from major producing centres such as Nashik, Pune and Solapur.

However, daily arrivals have now fallen to around 30 to 35 truckloads, resulting in a supply crunch that has pushed up wholesale prices.

The shortage has already led to an increase of around Rs 10 per kg in wholesale rates over the past few days.

Koyambedu Small Wholesale Traders’ Welfare Association president Muthukumar said onions that were selling at Rs 20-25 per kg in the wholesale market are now being traded at Rs 30-35 per kg.

Retail prices, he added, are slightly higher depending on the locality and the margins charged by vendors.

Traders said the market is likely to remain volatile if arrivals from Maharashtra continue to be affected by adverse weather. They cautioned that wholesale onion prices could rise further to Rs 50-60 per kg if supplies fail to recover in the coming days, with the increase eventually reflected in retail markets as well.

Market sources noted that such fluctuations are not unusual during the southwest monsoon season, when persistent rains often disrupt harvesting operations, damage standing crops and slow transportation from producing regions.

They expressed hope that prices would stabilise once weather conditions improve and fresh arrivals return to normal levels.

In contrast, tomato prices have remained relatively low owing to abundant arrivals in the wholesale market. Native tomatoes are currently being sold at Rs 10-20 per kg, while hybrid varieties are priced between Rs 30 and Rs 50 per kg.

Prices of most other vegetables have remained largely stable, with traders saying there has been no significant change in supply or demand. Consumers, however, are expected to feel the impact of the onion price rise if the current supply constraints persist through the coming weeks.

–IANS

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