Hyderabad: Given the recent spike in onion prices, restaurants in Hyderabad are finding it difficult to serve it with dishes thanks to increasing operational costs. Retail onion prices that earlier ranged between Rs 20-30 per kilogram (Kg) a month ago are currently now hovering between Rs 40 to 50 per Kg at almost double the price.
Siasat.com found that several restaurants in Hyderabad where onions are currently not being served with means, including Biryani. One restaurant displayed a written message on its wall notifying customers that there were “no onions,” urging them to cooperate.
‘NO ONIONS. Please cooperate with us,’ the notice read from the Hyderabad restaurant read.
The restaurant owner, who did not want to be identified, said, “When the customers ask for onions, we compensate by serving them turnip/carrot chutneys. Onion prices have spiked in recent times constraining our operating budget. People are very cooperative when it comes to things like this and they also understand the underlying factors for the unavailability of the course.”
This onion price hike in Hyderabad comes because of a shortfall in production due to drought-like conditions in Maharashtra, the country’s leading onion-producing state. Moreover, the slower government procurement to maintain a buffer stock has also led to this sharp spike over the last month.
A year ago, retail prices were around Rs 20 per Kg, and wholesale prices were at Rs 1,581.97 per quintal. At present, the retail price of onions has increased by about 25%, while the wholesale price has risen by 15%.
“Essentially, onion remains the most important condiment with any dish as it enhances the taste with its sweet, sour, and crispy flavour,” another restaurant owner from Hyderabad told Siasat.com. “However, in conditions like these, customers have to bear with it because of the price increase. The prices keep on fluctuating every now and then, and prices of almost all vegetables have increased in recent times. We hope that it witnesses a dip very soon,” the restaurant added.
However, other restaurants that have not stopped serving onions are asking customers to pay up Rs 10 more as additional charges for onions. This is a common practice and is usually followed in establishments given that sometimes customers demand for extra onions, and don’t mind paying more for it as well.
Market analysts predict that prices could exceed Rs 50 to Rs 60 per kg as the new kharif crop is not expected to arrive until September or October. The limited procurement by government agencies this year has encouraged traders and farmers to hold onto their stock, anticipating higher prices later.
