Onion prices skyrocket in Hyderabad due to supply-demand mismatch

Hyderabad: Onion prices have doubled in Hyderabad in just a few weeks due to a supply-demand mismatch. Delayed monsoon rains are being cited as the reason behind the low supply.

The vegetable that was sold at Rs. 20-25 per kilogram a few weeks ago is currently being sold at Rs. 40-45 in the city.

A few months ago, Hyderabad saw a surge in tomato prices. In July, the prices of tomatoes reached Rs. 200 per kg due to heavy rainfall in Telangana. However, they reduced after a few weeks due to a drastic drop in sales volumes.

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At that time, people in Hyderabad were not buying tomatoes and instead were focusing on other vegetables.

As the prices of onion are expected to cool down only after November, it remains to be seen how people will respond to the rise in rates in Hyderabad.