It sounds funny but Onion has become a deciding factor for common man in India to opt for one store instead of other. With high onion prices at local bhajiwalas (the immediate source) consumers are lining up at hypermarkets for their purchases.
Now why is it that hypermarkets afford to sell Onions cheaper :
1. No middle man - Given the direct access to farmers and bulk buying power there is a direct cost advantage
2. Up Sell - The hypermarket can earn margins with its broader assortment. As the walkin customer is bound to buy additional products there is an opportunity to earn in other high margin products by keeping Onion's prices low
There would be many more reasons but it is for Govt to monitor & control such high pricing and manipulation of rates. People with no easy access to hypermarkets are definitely going to lose pocket or appetite.
