Coimbatore Witnesses Surge In Onion Prices Due To Reduced Supplies

Over the last few months, there has been an exponential rise in tomato prices in India. Now, it seems the cost of onions is also increasing in some states. In Coimbatore (Tamil Nadu), small onions are sourced from Alandurai, Poondi, Siruvani, Kinathukkadavu, Nashik, and Pune, while large onions are procured from states like Maharashtra. Last month, the price of small and big onions in Coimbatore ranged between Rs 15 to Rs 20 per kilogram (kg). Since then, there has been a gradual uptick in their prices. Currently, one kg of spring onions is being retailed at approximately Rs 45 to Rs 50. One kg of big onion is being sold at the cost of Rs 25 to Rs 35. Traders have highlighted that the price surge is due to insufficient local availability, exacerbated by rainfall in the northern states. Big onions were priced at Rs 28 per kg at the wholesale markets in Coimbatore city on Tuesday. This price hike is due to its reduced supplies.

In contrast to the average daily supply of 600 tonnes, only around 300 tonnes were delivered to the markets on Tuesday. Prices are gradually rising nearly every day. At the Uzhavar Sandhai in Coimbatore, big onions were sold at Rs 32 per kg. An official said in an interview that the prices would stabilise within a month as the volume of arrivals is set to rise.

Wholesale traders are signalling the potential for further price increases. According to them, factors such as the government’s decision to acquire an additional two lakh tonnes of onions and the implementation of export duties are playing a role in driving prices upward. The current supply levels are lower than usual. It’s thus important to keep a close eye on onion prices, says Mr Rajendran, president of TK Market vegetable traders’ association, while speaking to News18.

Tomato prices have seen a decline in the wholesale markets. Tomatoes were sold in 25 kg boxes, with prices ranging from Rs 500 to Rs 600. The daily supply amounted to almost 2,500 boxes, including tomatoes from local and nearby markets. A significant proportion, about 70%, is directed towards Kerala. With the ongoing Onam festival, there is currently a surge in demand in the state. Thus, there is a possibility of prices dropping even further.

As per official sources, about 2,000 acres of land are used for the cultivation of tomatoes in the Coimbatore district. With timely and adequate rainfall, there’s an anticipation of ample local tomato production.