Onion prices touch Rs 75-80, to rise further due to floods

The cost of onion has shot up to Rs 75 per kg in the open market in the State, and the vegetable is being sold for Rs 80 in some places.
Centre intervention possible to prevent onion prices from shooting up. (File Photo | PTI)
Centre intervention possible to prevent onion prices from shooting up. (File Photo | PTI)

KURNOOL/VIJAYAWADA/VISAKHAPATNAM: The cost of onion has shot up to Rs 75 per kg in the open market in the State, and the vegetable is being sold for Rs 80 in some places. The price touched Rs 60 at Rythu Bazaars.Consumers complain that the price is not commensurate with the quality of onions, as they had been damaged by the rain. The high price, however, has brought cheer to farmers in Kurnool district, who are earning more than Rs 6,000 per quintal. The price could rise further in a few days as there is a huge demand and lack of supply from other States, they said.

On Monday, the price per quintal at the Kurnool Agriculture Market Yard was Rs 6,380 — the season’s highest so far. If the trend continues, the price might touch Rs 10,000 per quintal, which means the retail price could cross Rs 100 per kg in a couple of days.In Kurnool, from where most of the domestic need for onions is met, a significant chunk of the crop, which was cultivated on 27,500 hectares, was damaged by the surplus rain. Usually, onions are cultivated on 28,000 hectares in the region.

Horticulture assistant director (Kurnool) Raghunath Reddy said that as per preliminary reports, the crop on 2,561 hectares was damaged, and the yield from the rest of the cultivated area reduced. Normally, between 70 and 120 quintals of onion is produced per acre in the district, but due to the heavy rains, the yield reduced to between 30 and 40 quintals. “The situation today is no different from last year, when production was hit and prices touched Rs 16,000 per quintal,” he said.

Consumers upset over high prices  of vegetables during festival season

Kurnool Agriculture Market Yard secretary R Vijaya Lakshmi told TNIE that nowadays only 1,600-2,000 quintals of onion are being brought to the market, compared to the normal average of 12,000 quintals. “Due to low supply and high demand, the cost of onion doubled over the last week,” she explained. Onion wholesalers are also worried about the current trend. KP Srinivasulu, an onion trader, said that usually 70-75 truckloads of onion arrive at the market, but the number has reduced to just 20-30 now.

Farmers, though worried about the low production, are happy about the high price they fetch for what they are bring to the market. “I got nearly 700 quintals from my five acres last year, but now it is just 100 quintals due to the incessant rains. The only relief is the good price,” said G Padmanabha Reddy, an onion farmer from Gokulapadu village of Kurnool district.

On the other hand, consumers are upset about the high prices of vegetables, especially during the festive season. Complaints are also pouring in about the quality of onions being sold at Rythu Bazaars. “They are selling damaged onions at premium prices, which is not fair,” complained Raju, from MVP Colony in Visakhapatnam. The port city, according to marketing joint director Kaleswara Rao, normally receives about 70 metric tonnes per day, but the supply has fallen to 40 metric tonnes now.

The situation is no different in the rest of the State, with onions starting to become scarce. “The situation is not good. We ourselves are buying them at a high price. If the quality is good, the price is higher, and it is likely to increase further in the coming days,” said a retailer in Vijayawada, who sold onions at Rs 50 per kg last week, and now sells them at Rs 80 per kg.

Onions are set to be a premium product for a couple of months, as chances of stock arriving from Maharashtra, the largest grower of onions, is dim, since the State witnessed a flood. “We can only pray that the situation improves and the market stabilises,” the retailer said.

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