Onions may become dear, prices to hit `100

Onions are expected to become dear and their prices are expected to reach `100 per kg by mid-September.

Onion prices in the local market increased to `50 per kg against `15 per kg two weeks ago. Onion stocks in all major city markets have come down drastically due to the dwindling supplies from the neighbouring states and districts.

The Malakpet onion market, the biggest wholesale market in state, has been witnessing dwindling supplies for the past two weeks.

Traders said that onions are sold for `100 per kg in Chennai and with the festival seasons round the corner, the prices may skyrocket.

Hyderabad gets onions from Maharashtra, Karnataka and AP. Besides, the neighbouring districts like Gadwal and Mahabubnagar are also its major suppliers.

However, the supply from these places is hit for the past two weeks.

“We had not witnessed such a sharp rise in onion prices within two weeks even during 2014 and 2015 when prices reached astronomically high. The damage caused to the crops due to the floods in Gujarat, Madhya Pradesh also added to the shortage. Besides, the drought in Maharashtra and AP also played a major role. The prevailing circumstances indicate that normal supplies cannot be restored till November,” said D. Mallikarjun, a trader.

“We receive 60 truckloads of onions per day from Maharashtra, Karnataka and AP. However, during the past two weeks, it has come down to 25 trucks,” said J. Ananthaiah, agriculture market committee selection grade secretary at the Malakpet market. The local season for onion starts in September and ends till November.

MARKETS HAVE come down due to the dwindling supplies from the neighbouring states and districts.