Supply-Demand Gap Causes Cost Increase...
Onion prices in Hyderabad have surged by 100% within a few weeks, primarily attributed to a supply-demand disparity. The delayed monsoon rains are being pointed out as the key factor leading to reduced supply.
The vegetable that was priced at Rs. 20-25 per kilogram a few weeks ago is now being retailed at Rs. 40-45 in the city.
A few months ago, Hyderabad witnessed a spike in tomato prices. In July, tomato prices soared to Rs. 200 per kg, primarily as a result of heavy rainfall in Telangana. However, they subsequently declined after a few weeks due to a significant decrease in sales volumes.
During that period, residents of Hyderabad were avoiding the purchase of tomatoes and were opting for alternative vegetables.
Onion prices are likely to stay high until November in Hyderabad. It'll be interesting to see how people react to these higher prices.
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