Prices of onions, of both the big and small varieties, are on the upswing in the markets in Tiruchi and are likely to rule high during the festive season because of apparent slump in the arrivals.
While the price of small onions had been ruling high for nearly a month now, the price of the Bellary onions shot up in the past fortnight, wholesale traders in Tiruchi say. The city’s wholesale market caters to retail markets in Tiruchi and its neighbouring districts such as Thanjavur, Pudukottai, Tiruvarur, and Nagapattinam.
On Monday, small onions were being sold in the range of ₹80-₹50 a kg in the wholesale market in Tiruchi, depending on the quality. While the top quality commanded a price of ₹80 a kg, the second quality was priced at ₹70 and the lowest was selling at ₹50 a kg. A month ago, the wholesale price of the top quality small onions was around ₹50 a kg here, according to traders.
The price of Bellary onions ranged between ₹60 and ₹35 a kg, depending on the quality. The second quality was priced at ₹40 a kg. The price of the top quality of this variety has gone up by ₹20 a kg over the past fortnight, the traders said. The prices are usually higher by ₹10 to ₹15 a kg in the retail markets.
Wholesale traders attribute the rise in price to the drop in arrivals. “We are getting just about 200 tonnes of Bellary onions from Karnataka and Maharashtra now against the normal average of 400 tonnes a day,” said A. Thangaraj, general secretary, Tiruchi Onion Commission Mandi Traders’ Association.
Stocks of the old crop have dwindled in Maharashtra, which is a major supplier. Arrivals of fresh crop are expected only in January, the traders said.
Similarly, we are getting only about 200 to 250 tonnes of small onions from Perambalur, Thuraiyur, Dharmapuri, Oddanchatram and a few other places, against the normal average of about 350 tonnes a day. Small onions, known as sambar onions, are widely consumed in Tamil Nadu. Perambalur and Tiruchi are the major onion-producing districts in the State. The crop is raised on about 8,000 hectares of land in Perambalur district and on nearly 4,000 hectares of land in Tiruchi district.
The prices of both varieties of onions are expected to rule high till December and are likely to go up further by about ₹10 a kg during the Deepavali festival season, the traders said.
Some of the traders felt that export of onions should be carefully regulated depending on the market conditions. “Despite the 40% duty, export of onions continues. The Centre should restrict onion exports whenever there is short supply in the domestic market,” Mr. Thangaraj added.
