CHENNAI: As the Centre is mulling to impose stock holding limits on traders to control the prices of onion, the prices of the crop has been skyrocketing with one kg of onion costing `60 to `70 per kg in the city. Traders believe that until the fresh crops from Maharashtra arrives in the month of late December or early January, there will be no respite for buyers.
The reason for the prices to skyrocket is due to various factors, say onion wholesale dealers. Usually, this is the time that the prices of onions rise as there is non-availability of fresh crops. “This phase is usually for a brief period but now with the non-availability of Nashik onions which was hit due to floods, all eyes will be on the fresh crops, which are expected during the month of December or January next year, following which the prices are likely to stabilize,” said the trader.
Abdul Khader, secretary of Koyambedu Vegetable Wholesale Merchants Association, said the price of onions will be determined, based on the availability of the crop.
“Yesterday, the availability was less and price was on the rise. On Monday, there was a huge availability of Andhra onions at Koyambedu wholesale market, which has low shelf life. Usually, Andhra onions are considered to be cheaper when compared to onions from Karnataka and Maharashtra. It was priced less than `20 a couple of weeks ago. Yesterday, it shot up to `50 per kg. Now the price has come down to `45 per kg due to more trucks coming from Andhra,” said Khader.
An onion trader told Express that once the Andhra season ends, the traders will depend on Bangalore onions or onions from Maharashtra, which is facing a crisis due to damage of crops during the rain. As a result, the prices are expected to go up further as there will be demand for Bangalore onions, the trader said.
He said the cost of Bangalore onions in the North is rising due to infrastructure costs involved in supply of onions. “Onions in Delhi are costing above `70. The shelf life of Bangalore onion is also less when compared to Maharashtra onions, that could last for more than a month. Now it all depends on the availability of the crop. Till then, the favourite onion sambar is likely to be a costly affair for Tamilians,” he said.