Onion Prices Surge in Chennai as Koyambedu Market Supplies Drop by Half

Onion prices have surged across Chennai following a sharp decline in daily arrivals at the Koyambedu wholesale market, with retail prices climbing to ₹80 per kilogram.

Wholesale rates at the market have tripled from ₹20 per kg to around ₹60 per kg. Traders have warned that wholesale rates could hit ₹100 per kg if incoming supplies from Nashik in Maharashtra and Bellary in Karnataka fail to improve in the coming days.

The price spike follows a steep reduction in supply caused by rains in Nashik and Bellary. Koyambedu currently receives only 30 to 40 truckloads—amounting to roughly 600 to 800 tonnes—of onions each day, compared to its standard daily intake of 80 truckloads, or about 1,600 tonnes.

According to P Sukumaran, secretary of the Koyambedu Wholesale Merchants’ Association, the market had received regular supplies from Maharashtra, Karnataka, and Telangana until a few days ago, when inbound dispatches suddenly fell.

Traders are expecting cultivation and supply from Nashik and Bellary to pick up over the next 10 to 15 days. However, Sukumaran noted that if supply volumes remain at current depressed levels, wholesale prices are likely to escalate to ₹100 per kg.

The current price jump marks the first significant surge in onion prices in nearly a year. The last major supply shortage occurred in November and December 2024, when wholesale onion prices hovered between ₹70 and ₹90 per kg.

Prices of most other vegetables in Koyambedu have remained stable, with the exception of beans and carrots, which are experiencing minor seasonal shortages as third crop cultivation begins.