Onion Prices Jump in Chennai as heavy rains in Maharashtra Disrupt Supply
2 min read
Onion prices in Chennai have spiked sharply after a steep drop in arrivals from Maharashtra, with traders warning that retail rates may climb further in the coming days if supplies do not improve.
Wholesale traders at the Koyambedu Wholesale Market linked the rise to heavy rainfall in Maharashtra, which has hampered onion cultivation and slowed the movement of produce to major markets nationwide.
Maharashtra, together with Karnataka, ranks as a key source of large onions for Tamil Nadu and several other states.
Traders note that the Koyambedu market typically sees about 60 to 65 truckloads of onions daily from major producing hubs such as Nashik, Pune and Solapur.
Currently, daily arrivals have slipped to roughly 30 to 35 truckloads, creating a supply squeeze that has driven up wholesale prices.
The shortfall has already pushed wholesale rates up by around Rs 10 per kg over the past few days.
Muthukumar, president of the Koyambedu Small Wholesale Traders’ Welfare Association, said onions that were trading at Rs 20‑25 per kg in the wholesale market are now fetching Rs 30‑35 per kg.
He added that retail prices vary slightly by locality and the margins set by vendors.
Traders warned that the market could stay volatile if Maharashtra’s arrivals continue to suffer from bad weather. They cautioned that wholesale onion prices might climb further to Rs 50‑60 per kg if supplies do not recover soon, with any increase eventually showing up in retail prices as well.
Market observers pointed out that such fluctuations are common during the southwest monsoon, when persistent rains often interrupt harvesting, damage standing crops and delay transport from producing areas.
They expressed optimism that prices would stabilise once weather conditions improve and normal inflow of onions resumes.
In contrast, tomato prices have stayed relatively low thanks to ample arrivals in the wholesale market. Native tomatoes are currently selling for Rs 10‑20 per kg, while hybrid varieties range from Rs 30 to Rs 50 per kg.
Prices of most other vegetables have remained largely steady, with traders reporting no notable shift in supply or demand. Consumers, however, are likely to feel the effect of the onion price rise if the present supply constraints persist over the coming weeks.
