After hitting a century, onion prices are set to scale further and may touch the ₹150/kg-mark if the prevailing situation continues. Top-grade onions from the summer stocks are being sold at ₹120 a kg in Mysuru.
The sky-rocketing prices of onion are making homemakers shed tears and shops have witnessed 50% to 60% drop in sales.
Some traders said the prices are unlikely to become stable with fresh supplies from Maharashtra, one of the largest producers, yet to start. The fresh arrivals may take at least 15 to 20 days and the prices may continue to be on the higher side until the fresh supplies hit the markets.
“With substantial drop in sales, HOPCOMS has cut down its procurement from the wholesale markets. Sales have dropped by 50% to 60% in our outlets alone across Mysuru, and therefore procurement has been cut to half. It is difficult for us to keep stock without sales. Onions are sold at ₹115 a kg in our outlets,” said Datta, manager, HOPCOMS, Mysuru.
He told The Hindu that HOPCOMS supplies veggies to many government institutions and hostels besides the Mysuru zoo. Despite the sharp rise in price, the supplies to these places have not been affected as they have asked us to continue with the same quantity. But the sales in our outlets have dropped. Those who were buying 1-2 kgs have reduced it to a quarter, he added.
Raju, who runs a provision store in BEML Layout Second Stage in Bogadi, said his store has stopped keeping first-grade onion since there are no buyers. “I have kept second-grade onion priced at ₹90 a kg. They are smaller in size,” he said, adding that onion purchases at his store have dropped.
At Devaraja Market, onions are available at contrasting prices depending on their quality and size. They are priced between ₹80 and ₹120 a kg. Mysore Hotel Owners’ Association Narayana Gowda said the hotels, which largely bank on onions for dishes, are majorly affected. Some budget eateries have reduced the use of onion in their food. “It is not a local issue but the situation arose owing to the floods in Maharashtra and North Karnataka. We have to deal with the situation,” he said.
Some veggie outlets warned: “The price of top-grade onions may even touch ₹150, setting a new record.”
