Chennai: Onion prices have surged in the city amid a sharp decline in arrivals at the Koyambedu wholesale market, with traders warning that prices could touch ₹100 a kg if supplies from Nashik and Bellary do not improve. Wholesale prices have risen from ₹20 a kg to around ₹60, and retail prices to ₹80 a kg, as the market now gets 30-40 truckloads (600-800 tonnes) a day, against the usual 80 (1,600 tonnes).The supply fell following rains in Nashik and Bellary. Prices of other vegetables have remained stable, except for beans and carrots, which have seen a seasonal shortage as the third crop cultivation begins.“After nearly a year, the city is witnessing a surge in onion prices. The supply from Maharashtra, Karnataka and Telangana was normal until a few days ago when the supply reduced,” said P Sukumaran, secretary of Koyambedu Wholesale Merchants’ Association.He added, “We are expecting an increase in cultivation and supply from Nashik and Bellary in the next 10 to 15 days. If the supply remains the same, prices are expected to shoot up to ₹100 a kg in the wholesale market.”The last major surge in onion prices due to supply shortage was in Nov and Dec in 2024, when onions were sold at ₹70-₹90 a kg in the wholesale market. Retail prices had touched ₹110 a kg.With arrivals declining, retail traders, especially supermarkets, are purchasing fewer onions. “The sudden surge in onion prices has impacted sales. The quantity purchased by customers has reduced. We hope govt will take steps to increase onion supplies,” said M Sadasivam, a retail trader in Purasawakkam.Eateries are also feeling the pinch. M Ravi, president of Chennai Hotels Association, said, “We use onions in almost every dish, including sambar, biryani and chutneys. We cannot exclude onions or compromise on taste. We are witnessing losses as it is, and if food prices are increased to reflect onion prices, it would further affect the business.”
