Onam rush sends veggie prices soaring, turns sugar bitter in Keralam

With only two days to go for Thiruvonam, vegetable prices continue to soar, even as the prices of essentials, including rice and coconut oil, have declined. The skyrocketing price of sugar, however, has come as a major shock to shoppers ahead of the festival rush in Keralam.

Among vegetables, the price of raw bananas, the most sought-after ingredient for making chips, has remained high for some time, with one kg costing around ₹65 in Kochi’s wholesale markets. Traders cite reduced supplies from key production centres, including Mettupalayam in Tamil Nadu, owing to poor rainfall as the primary reason for the price increase.

Prices of essential items, including rice and oil, have eased in Kochi markets.
| Photo Credit:
H. VIBHU

“Raw bananas cost only around ₹50 a kg in the wholesale market during the last Onam season. This time, the price has increased, resulting in higher prices for chips as well. Chip manufacturers buy only high-grade raw bananas, which cost around ₹70 a kg. At this rate, chips must be priced above ₹500 a kg,” said K.M. Hashim, a wholesale banana trader at the Ernakulam market.

N.H. Shameed, general secretary of the Ernakulam Market Stall Owners’ Association, also pointed to the unusual increase in the prices of onions, shallots, beans and carrots. “Onions, which cost ₹31 a kg last week, are now priced at ₹48 in the wholesale market. The price of beans has also increased by around ₹20 to touch ₹80 a kg,” he said. He cited increased exports to countries where the Keralite diaspora celebrates Onam on a grand scale as the main reason for the rise in domestic prices.

Sugar prices spike

The retail price of sugar in the district ranged between ₹75 and ₹77 a kg on Sunday (August 23). Though many suspect that the increased diversion of sugar for ethanol production is the primary reason for the price rise, the Union government has attributed it to a fall in domestic production, increased demand ahead of the festive season, weather-related crop damage, tighter global supplies, and speculation and hoarding by sections of the industry.

Meanwhile, the prices of rice varieties have remained steady for the past couple of weeks despite initial fears of a sharp increase. “Matta, the most popular variety, was priced at ₹57 a kg in the wholesale market in Ernakulam on Sunday, down by ₹3 from two weeks ago. The wholesale prices of the Surekha and Jaya varieties have remained stable at ₹53 and ₹47 a kg, respectively, for some time. Mill owners had earlier cited a shortage of paddy as the reason for the price rise, but they now say the issue has been resolved,” said Sanoob Abdulkhader, an Aluva-based wholesaler.

The retail price of coconut oil has also declined to around ₹290 a kg after exceeding ₹300 a couple of weeks ago. Traders attributed the price stabilisation to the release of oil and copra stocks hoarded by manufacturers.

The State government, meanwhile, has stepped up market intervention to rein in rising prices. Supplyco recorded sales worth ₹304.65 crore as of Sunday.