Shallot prices soar, touch ₹135 a kg in retail market

Traders say that extended south-west monsoon in Karnataka, Andhra Pradesh and Telengana have damaged the standing crop of onions.   | Photo Credit: M_Moorthy

Despite the State Government’s intervention for price regulation, the cost of onion has been soaring in Tiruchi market.

The price of top quality shallots, which was being sold for ₹ 100 a kg in the second week of October, was sold for ₹135 in the retail market on Thursday. One bag of shallots (50 kg) was being sold at ₹5,300 at the wholesale market in Tiruchi. One kg of shallot was quoted at ₹106 in the wholesale market.

The prices of big onion too did not show signs of a downward trend. One bag of big onion weighing 50 kg, was sold for ₹3,700. The price of one kg big onion was being quoted at ₹74 in the wholesale market on Thursday and it was being sold between ₹ 90 and ₹100 in the retail market.

The soaring prices suggested that the price stabilisation exercise by the State government to sell onion at ₹45 in the farm fresh outlets have not impacted the market prices.

The onion wholesale traders in Tiruchi, who source both the big and small varieties of onions from Perambalur, and Karnataka, supply them to traders in Thanjavur, Kumbakonam, Pudukottai, and Tiruvarur district. The wholesale market in Tiruchi requires 30 loads of big onion (10 tonne each) to meet the requirement of retail markets in Tiruchi and other delta districts. But, the arrival dwindled drastically. The wholesale market receives about 10 loads of big onion for the last few weeks from Karnataka and Maharashtra. Similarly, as against the requirement of 250 tonnes of shallots, the market received just 75 tonnes of shallots a day for the last two weeks.

“There is a clear mismatch between supply and demand. The arrival continues to decline. It has eventually caused escalation in prices of onions,” says P. Sudhakar, a wholesale onion trader in Tiruchi.

Traders say that the extended south-west monsoon in Karnataka, Andhra Pradesh and Telengana have damaged the standing crop of onions. The arrival from Maharashtra had actually helped to meet out the demand to an extent. Otherwise, the prices would have touched beyond ₹150 a kg.

They are of the view that the prices will show no respite even after Deepavali festival on November 14. The prices will stabilise only in January, they believe.

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Printable version | Nov 24, 2020 8:52:35 AM | https://www.thehindu.com/news/cities/Tiruchirapalli/shallot-prices-soar-touch-135-a-kg-in-retail-market/article32974222.ece

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