There has been a sharp rise in onion prices across India just before Diwali. Heavy rains in major onion-producing states, including Maharashtra, Karnataka, Telangana, and Andhra Pradesh, have damaged crops, pushing retail prices up by Rs 10 to Rs 20 per kg. Onions, which were selling for Rs 50-60 per kg last week, are now priced at Rs 80 per kg, with some areas seeing prices as high as Rs 90 per kg.
The early Kharif onion crop has been particularly hit, with both yield and quality affected. Flooded fields have delayed harvesting by 10 to 15 days, further contributing to the price hike. Onion prices are expected to remain elevated until Diwali next week. However, traders predict that prices may ease by the second week of November when more onions will arrive in the markets.
According to the Department of Consumer Affairs, the average retail price of onion across the country is Rs 54.64 per kg, with a maximum of Rs 90 per kg. In the Lasalgaon Mandi of Nashik, the wholesale price has remained stable at Rs 45 to Rs 50 per kg for the last one month.
Bharat Dighole, President of the Maharashtra State Onion Producers Association, said that farmers in Maharashtra are currently benefiting from higher prices of Rs 45-50 per kg. However, the heavy rains last week caused more damage to crops in the southern states than in Maharashtra, where harvesting had already begun. He added that onion crop have been planted well this season, so good production is expected.
To control the price rise, the central government is selling onions at subsidized rates of Rs 35 per kg through the National Cooperative Consumer Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED). Initially available in Delhi-NCR, the scheme has now expanded to other states. The government had procured 4.7 lakh tonnes of onions during the Rabi season for its price stabilization buffer and has already sold 1.15 lakh tonnes since September 5, 2024. NCCF is selling subsidized onions at 77 centers in 21 states, while NAFED operates 43 centers in 16 states.