Vegetable Prices Experience Sharp Decline in Chennai Retail Markets
Retail prices for essential vegetables including onions, potatoes, and tomatoes have dropped significantly in Chennai, falling below 40 rupees per kilogram. This notable decrease follows a substantial price reduction at the Koyambedu wholesale market, which has witnessed a heavy influx of supply from various other states across India.
Detailed Price Breakdown for Key Vegetables
On Friday, onion prices saw a dramatic fall with regular quality onions priced between 13 to 16 rupees per kilogram, while premium quality onions were available for 18 to 20 rupees. This marks a substantial drop from previous rates of around 30 rupees per kilogram. In retail markets, onions were selling at approximately 35 rupees per kilogram, with some vendors offering regular onions at 100 rupees for 4 kilograms.
Tomatoes sourced from Bengaluru were retailing at 25 rupees per kilogram, and potatoes arriving from Madhya Pradesh and Uttar Pradesh were priced between 15 to 20 rupees per kilogram. The increased supply has created a market situation where demand has not kept pace with availability.
Wholesale Market Dynamics and Trader Insights
V R Soundararajan, an onion trader operating at Koyambedu market, explained the situation clearly. "We received huge quantities of these vegetables and demand did not increase," he stated, highlighting the supply-demand imbalance driving prices downward.
A vendor provided specific numbers regarding the supply surge. Nearly 40 lorries carrying onions, each transporting 20 tonnes, arrived at the market daily throughout the week. This represents an increase of about 10 lorries compared to normal supply levels. The onions originated primarily from Maharashtra, Karnataka, and Andhra Pradesh.
Similarly, at least 25 lorries of potatoes, each carrying 20 tonnes, entered the market from states including Uttar Pradesh and Madhya Pradesh. The trader expressed concern about the pricing situation, noting "Ideally, it should cost at least 30 per kg in the wholesale market. It is half the price now. Farmers are selling it for less than half the price."
Broader Vegetable Market Trends
The price decline extends beyond just onions, potatoes, and tomatoes. Wholesale prices for other vegetables including okra, chayote, carrots, beetroot, and beans ranged between 30 and 40 rupees per kilogram. Corresponding retail prices for these vegetables fell between 40 and 55 rupees per kilogram.
Online vs. Traditional Retail Pricing Differences
Online aggregators offered more competitive pricing compared to traditional grocery stores, with prices typically at least 10 rupees lower. Satish R, who owns a grocery shop in Saligramam, explained this discrepancy. "That's because customers do not have the option of picking the vegetables," he said. "We lose a few kilograms of vegetables either because they are too wrinkled, ripe, or damaged from the bulk we buy." This quality control process in physical stores contributes to their slightly higher pricing compared to online platforms.
