Onion prices in India have surged dramatically just before Diwali, with retail prices in metro cities like Delhi and Mumbai now ranging from Rs.80 to Rs.100 per kg. The spike is driven by heavy rains that have severely impacted onion crops in key producing states such as Maharashtra, Karnataka, and Madhya Pradesh. In some regions, rainfall was over 200% above normal, damaging crops and delaying harvests, leading to reduced supply in markets.
As a result, the government has been selling onions from buffer stocks at subsidized rates of Rs.25 per kg to provide some relief. However, traders predict that prices will remain elevated until mid-November, when fresh supplies from the next harvest start entering the market.
Farmers have expressed concern over the crop losses. Samadhan Bagul, a farmer from Maharashtra’s Dhule district, said, “This season’s heavy rains have stunted the growth of onion bulbs. Where I used to harvest five tonnes per acre, this year I’m only getting one tonne.” Similarly, Vikas Singh, an onion trader, noted that “prices will likely stabilize only after fresh arrivals by late November.”
In Bengaluru, wholesale prices have jumped to Rs.70 per kg from Rs.50 last week, and retail prices in local markets have touched Rs.80 per kg. This surge is expected to persist throughout the festive season, exacerbating concerns of rising inflation driven by food prices.
Government intervention, including measures like buffer stock sales and a possible ban on exports, may offer temporary relief, but the situation remains tense. If the trend continues, consumers could face higher prices well into the next year.
