The Hindu·3 min read·medium

Onion prices soar ₹20 a kg in Andhra Pradesh amid supply crunch

V
V. Kamalakara Rao
Onion prices soar ₹20 a kg in Andhra Pradesh amid supply crunch
AI Summary

Onion prices in Andhra Pradesh have surged by ₹20 per kg due to a significant supply shortage caused by a severe monsoon deficit. Farmers in the Kurnool region abandoned onion cultivation in favor of other crops, forcing traders to rely on imports from Maharashtra.

Why it matters

Rising food prices directly impact household budgets and reflect the broader economic consequences of climate-related agricultural instability in India.

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Kitchen budgets across Andhra Pradesh have taken a severe hit, with onion prices rising by more than ₹20 a kg compared with the corresponding period last month, amid a sharp fall in supplies across the State.

Andhra Pradesh requires an estimated 5,000 tonnes of onions a day to meet demand, but arrivals in local markets have fallen to about 2,500 tonnes. In Visakhapatnam, daily arrivals at the four main wholesale markets have declined to 100-125 tonnes against the normal requirement of around 250 tonnes.

The immediate reason for the supply crunch is the absence of the local Kurnool variety.

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