Prices of small onion plummet in markets

The prices of shallots have plummeted in Tiruchi markets due to increase in supply and poor demand.

One kg of shallot was sold for ₹10 to ₹30 depending upon the quality. The rate of a kg of big onion (Bellary) ranged between ₹7 to ₹28 in the wholesale market in Tiruchi on Saturday.

The rate was ₹10 more in retail markets and grocery stores. Hawkers sold four kg of shallot (good quality) for ₹100 on the streets and doorstep of customers.

Though the rate of Bellary onion remained the same for the last three months, one kg of shallot was priced between ₹60 to ₹70 in June. The rate began to plummet in the last week of July. Traders attributed the slump in rates to poor demand among customers.

According to sources, Tiruchi received about 100 tonnes of shallots and 200 tonnes of big (Bellary) onions daily. Though the supply was just about 20% to 25% more than the normal, poor demand among the customers caused the slump in prices.

“The yield is said to be good in almost all onion cultivable areas. Locally grown onion hits neighbouring markets too. It has ultimately brought down the demand onion in Tiruchi market,” said P. Sudhakar of Sri Kalaivani Traders at the Wholesale Market for Onion in Tiruchi.

He said Thanjavur, Tiruvarur, Nagapattinam, Karaikal, Pudukottai and Madurai received onion mainly from Tiruchi market. But the traders had been receiving just 50% of the regular order for the past few weeks due to marketing of locally grown onion in the respective towns.

Mr. Sudhakar said the arrival of shallot from Perambalur would slowly pick up in the next few weeks. Though the demand would go up during the festive season, there would not be many fluctuations in prices till the end of the year.