Shallot prices rise as arrivals fall because of poor yield across Tamil Nadu

MADURAI: The price of shallots (sambhar onion) has risen sharply across Tamil Nadu, except Tiruchy, as market arrivals have dipped due to poor yield, Traders in leading cities say the price would hold steady until the next harvest reaches the markets in two months.

At Chennai’s Koyambedu wholesale market, shallots are priced at Rs 60-Rs 100 per kg, depending on quality, and retail prices range between Rs 80 and Rs 110 per kg. Traders said the market would normally receive 10 trucks of shallots, each carrying 10-12 tonnes, mainly from Karnataka every day. But currently only three or four truck loads are reaching the market.

“About one-and-a-half months ago, the highest wholesale price was only Rs 60 per kg. It has increased gradually since then,” said PR Bharani, a wholesale vendor at Koyambedu market.

In Madurai, a 10-kg bag of shallots is selling for Rs 800-Rs 1,000 in the wholesale market, while retail prices have touched Rs 110 per kg. S Manuel Jayaraj, president of the Madurai Central Market Vegetable and Perishable Commodities Merchants Association, Paravai, said supply had remained tight for the past few months. “Prices are likely to remain high till next harvest season which is in January.” Jayaraj said.

Daily arrivals from local farmers have fallen by nearly half, from around 100 tonnes. Traders added that arrivals from Theni, Dharapuram and Oddanchatram have also declined considerably, while unseasonal rains affected arrivals from Karnataka.

The price remained unchanged in Coimbatore for the last two weeks. Anna Vegetable Market Traders Welfare Association president Chandran said prices remained stable at Rs 800-Rs 1,100 for 10 kg over the past couple of weeks.

Tiruchy, however, bucked the trend and prices eased to Rs 75 per kg to Rs 100 last week following increase in arrivals from Perambalur, Thuraiyur and Namakkal. Second-quality shallots are sold for around Rs 60 per kg. Retail prices are Rs 10-Rs 20 higher.

A Thangaraj, secretary of the Tiruchy Onion Commission Mandi Traders Association, said lower demand during Purattasi and restrictions on exports had also contributed to the decline. He expects prices to climb during Deepavali.

(With inputs from Chennai, Coimbatore and Tiruchy)

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