TIRUCHY: Homemakers and eatery owners can rejoice as onion prices returned to normal after almost six months. Retail prices ranged between Rs 25-35 a kilo in the city on Thursday.
Arrival of fresh stock is cited as reason for the slump in price. While consumers are happy, traders complain they were staring at losses as they had invested a lot earlier to procure from other States and even abroad.
Wholesale traders have requested the Union government to lift the ban on export which is in place since last year.
Due to inclement weather, onion cultivation dropped drastically in the State. This resulted in demand skyrocketing and sent prices on an upward spiral.
Despite all efforts by the government, the price shot up to as much as Rs 160 a kilo.
Grappling with supply chain, the Union government-imposed ban on exports in September 2019 till prices returned to normal. According to onion traders, while the daily requirement for onions is 600 tonnes,
less than 50 per cent of it used to arrive in the market. To meet demand, onions were imported from Turkey and Egypt.
A Thangaraj, secretary, Tiruchy Onion Wholesalers Association, said, “Prices stood above Rs 100 per kg for almost six months, as a result of which sales was affected. With the arrival of harvest season, there is now steady supply, which led to the price drop. Since there is a export ban, cultivated onions from across the state are arriving in markets. Supply now exceeds demand. To handle the situation, the Union government must lift the ban on onion exports.”