Hyderabad: Hyderabad is witnessing a sharp surge in onion prices as the staple is being sold for around Rs 60 to Rs 70 per kg. Until July, it was sold for Rs 20 per kg.
The steep increase is putting pressure on household budgets. It is also affecting hotels, restaurants and catering businesses across the city.
The impact of the price rise is higher as the surge happened when demand is high due to the ongoing wedding and festive season.
Hyderabad households feel onion price shock
Currently, most of the retail shops in Hyderabad are selling onions at around Rs 70 per kg.
The sudden increase has added to the overall cost of preparing food.
The onion price increase is also affecting the hotel, restaurant and catering sectors as onions are used in significant quantities in biryani, curries, gravies, snacks and several other preparations.
As per the traders, the sudden increase in onion prices in Hyderabad is mainly due to reduced arrivals from major onion-producing areas.
The supplies have been affected due to crop failure in Kurnool and crop losses in Karnataka in view of the poor rainfall.
Hyderabad normally receives at least 50 truckloads of onions each day, with each truck carrying around 25 tonnes. The consignments mainly come from Karnataka and Maharashtra, along with some areas of Andhra Pradesh.
However, arrivals have fallen over the past week.
Prices may remain high
Traders expect the supply shortage to continue for at least another month.
Retailers expect prices to ease once supplies from major producing states increase and market arrivals return to normal levels.
With demand remaining high during the wedding and festive season, Hyderabad consumers may have to pay higher prices for onions for the next few weeks.
