Onion prices soar to Rs 80 per kg, halting sales, consumption

Onion prices have surged again, with retail markets across the city selling a kilogram for Rs. 80. Just a week ago, prices ranged between Rs. 30 and Rs. 40 per kg, but the nearly doubled prices have led to a decline in both sales and consumption.

Hyderabad: Onions are back to bring tears to eyes of consumers with their prices.
The prices of onion have again hit the roof, with a kilogram of the edible bulb sold at Rs. 80 in retail markets across the city. The prices which until a week ago hovered between Rs. 30 and Rs. 40 a kg, have almost doubled leading to reduced sales and even its consumption to certain extent.

Traders at the wholesale market attribute the price increase to low supplies from local regions of Telangana, Karnataka, Andhra Pradesh and Maharashtra. A majority of the onion is sourced from Maharashtra and Karnataka.

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B Satyanarayana, a wholesale trader at Mahabubgunj Market at Malakpet, said the supplies were affected due to low crop yield in Karnataka and Maharashtra due to heavy rains. “There was huge crop damage and the farmers suffered losses. To make up the loss, the farmers are selling their yield at a higher price,” he said.

Depending upon the quality, a quintal of onion is sold between Rs.6,000 and Rs.6,500 at the wholesale markets at Mahabubgunj, Osmangunj, Bowenpally and Gudimalkapur.
“Daily around 250 truck load of onion arrives in the city from different parts of the country. At present only 150 truck load of onions are coming,” said Bandla Satish, another trader at Osmangunj market.

At Rythu Bazaar, the onion is sold at a price of Rs. 65 a kg. However, traders point out that onion is usually classified into grades and at Rythu Bazaar, the Grade – 2 onions are sold by middlemen.

Owing to the rise in price of onions the restaurants have stopped giving onions in salads and accompaniments in parcels. Instead extra pieces of carrot and cucumber are provided with food parcels.

Amid speculations that the onion prices could go further up in coming days, more tears appear to be in store for the consumers, particularly the middle class.