Bengaluru: Onion price spiral leaves bakers in tears

BENGALURU: The spike in price of onions has downed the spirits of neighbourhood bakeries in Benglauru. If they try to reduce use of the kitchen staple, their products will lose their tang and customers will stop buying. If they attempt to raise prices of the items, the consequences could be similar. And not like rates of yeast, potato, carrot and capsicum offer any respite, rue bakers.
"We use onions in multiple products. Egg/vegetable puffs, sandwiches, bread toast and mixture get their taste from onions. I have not increased prices of these products in my bakery. All I have done is reduced the quantity of onion we use in them," said Bala Subramanian Bhat, who has been running a bakery in Kamakshipalya for 33 years now. "I can't even reduce wages of my workers as the cost of living is going up. I have incurred a loss in the past six months," Bhat added.
Unwilling to compromise on quality, most bakers may be left with no choice but to charge more for the items they sell, if the price spiral does not abate.
"As an old establishment we have faith that onion prices will come down. In the unlikely scenario of that not happening, we wouldn't have a choice but to increase the prices of our products. For instance, a sandwich at our store costs Rs 35. We will increase it by Rs 3," said VF David, owner of Fatima Bakery, Castle Street junction, Richmond Road.
For now, bakers are looking at various avenues to compensate for the price spiral. And their first target is manpower.
"Not just onions, prices of carrots and beans too are on the higher side. I have laid off three managers from my store," said David.
"Onion crops were ravaged in the recent rain and that is why prices have hit the roof. We don't expect the rates to drop for another month and a half. Until new crops arrive, prices aren't going to reduce," a Hopcoms official said.
Some bakers have, meanwhile, decided to weather the crisis. Vijay Shankar, owner of Variar bakery, told TOI: "Such unpredicted situations are a part of every business. The difference we have felt is not very big, but we are spending close to Rs 30,000 extra every week on onions alone."
"When we start a business, we have to deal with the ups and downs that come with it," Vijay Shankar added.