TIRUCHY: Onion prices in Tiruchy fell on Monday after the arrival of 50 tonnes of the vegetable from Egypt and from Madhya Pradesh and Maharashtra. From Rs 160 a kg, the prices dropped to Rs 110-140, depending on the grade. Traders were down in the dumps over the past few days as people avoided buying the vegetable owing to high prices. Huge quantities of onion which were ready for harvest in Karnataka were destroyed in heavy rain.
This led to drop in supply in Tamil Nadu, and in turn, rise in prices. According to the Onion Wholesalers’ Association in Tiruchy, the daily average requirement in city and the central region is 300 tonnes. However, only 150 tonnes were available over the past couple of weeks.
A Thangarasu, secretary of the association, said, “As a major onion market in the State, the Tiruchy market has been supplying onion to eight central districts. Usually, onions are brought from Bengaluru, Nasik and Madhya Pradesh. Following a major dip in the arrival, demand shot up here.”
Prices expected to decrease further in coming days
With harvest underway in Nasik and Madhya Pradesh, demand for onions will not be as high as before, Thangarasu said. On Monday, the first batch of 50 tonnes of onion arrived at the Tiruchy wholesale market from Nasik and Madhya Pradesh. Prices dropped and are expected to decrease further in the coming days. On Monday, the price of first-quality onion stood at Rs 140 in the market against Rs 160 on Saturday. Ramesh, a trader who sells shallots (small onions), said that following the arrival of shallots from Perambalur, the price now stood at Rs 100 per kg.
Raid on warehouses
Based on an order from the Civil Supplies Department, a team of officials conducted raids on warehouses of onion traders to check for hoarding. Following the raids in Tiruchy and Pudukkottai, officials said no violations were observed in the districts. Department officials warned retailers not to sell onions at exorbitant prices.