Mumbai: Onion prices are rising sharply across India as weather-related crop damage, faster depletion of stored stocks and stronger seasonal demand squeeze market supplies. Retail prices have crossed Rs
60 per kg in several major cities, putting additional pressure on household budgets.
Unseasonal Rains Damage Rabi Crop
Unseasonal rain and hailstorms in Maharashtra during March and April damaged the late Rabi onion crop. Maharashtra is one of India’s largest onion-producing states and plays a crucial role in maintaining supplies nationwide.
The severe weather not only affected overall output but also reduced the quality and storage life of harvested onions. A considerable portion of the damaged crop reportedly began deteriorating much earlier than expected.
Stored Stocks Deplete Faster
India depends heavily on Rabi onions, harvested between March and April, to meet demand until the next major crop reaches markets around October.
However, damage to the stored crop has led to stocks running out faster than usual. Lower arrivals in wholesale markets have consequently pushed up prices across the supply chain.
Kharif Production Raises Concerns
Supply worries have been further heightened by reports suggesting that Maharashtra’s Kharif onion production could decline by around 5 percent to 7 percent.
Any fall in Kharif output could delay meaningful price relief, especially if fresh crop arrivals remain limited or are disrupted by adverse weather.
Festive Demand Adds Pressure
Onion prices traditionally increase during August and September because market arrivals tend to decline during this period.
At the same time, household and commercial demand rises ahead of the festive season. The combination of weaker availability and stronger consumption has intensified the current price surge.
Government Releases Buffer Stocks
To cool prices, the central government has started releasing onions from its buffer stocks into key consumption markets.
It has also deployed dedicated freight trains, known as the Kanda Express, to transport bulk onion supplies directly from Nashik to high-demand urban centres. The initiative is expected to improve availability, reduce transportation delays and provide some relief to consumers in the coming days.
