Hyderabad: Onion prices have shot up to Rs 25 per kg in the retail market in the wake of wholesale traders in Malakpet observing a shutdown, unable to cope with the demonetisation effect.
Chances of fluctuation in prices are very likely with traders deciding not to buy or sell onion at least until Saturday.
Everyday 100 to 150 truckloads of onions reach Malakpet from Maharash-tra (Aurangabad, Nashik, Ahmednagar), Karnataka (Kolar) and Andhra Pra-desh (Kurnool) including Gadwal and Mahabub-nagar.
According to Mr Dhara-nikota Sudhakar of Telangana Grain Merch-ants’ Association, traders are in a helpless situation with no money to pay farmers, lorry owners and even hamalis, who unload and load the bags. No one is ready to accept old Rs 500 and Rs 1000 notes, he said.
“Each truck carries 10 to 15 tonnes of onion and Rs 1.5 to 2 lakh has to be paid to the agent or farmers supplying it. Another Rs 20,000 to 35,000 has to be paid for transportation depending upon the distance. Onion procurement in Malakpet market thus costs Rs 2 crore per day. How can we do business if we are allowed only to withdraw Rs 50,000 per week?” he asked.
Onion prices that were in the range of Rs 15 to Rs 18 per kg, have touched Rs 25 (for the best quality) in the last 24 hours. Traders say that the price is bound to increase by Rs 5 per kg each day if they continue with closure of business for a few more days.
The Malakpet onion market is considered the biggest wholesale market for onion. It supplies to all districts of Telangana. Traders want the government to allow the use of old notes for payment to farmers like the facility extended for payments of tax and bills to utility departments, payment in petrol bunks till the situation improves.
