Onion prices have surged sharply across India, putting fresh pressure on household budgets and raising concerns over food inflation. The all-India average retail price of onions reached ₹49.59 per kg on September 1, compared with ₹28.48 a kg on the same day last year—an increase of more than 74%. The price was ₹35.47 per kg on August 1, highlighting the speed of the recent rise.
The increase is not primarily the result of a collapse in onion production. India’s onion output for 2025-26 is estimated at around 30.73 million tonnes, broadly similar to the previous year. Instead, supply disruptions, weather-related crop damage and delays in the arrival of the next crop have contributed to the sudden price escalation.
Maharashtra, the country’s largest onion-producing state, has faced unseasonal rain and hailstorms that affected stored and marketable stocks. At the same time, delayed monsoon conditions have slowed the arrival of the kharif crop, creating concerns over supplies during September and October.
Prices have risen particularly sharply in some markets. Retail onion prices have touched around ₹60 per kg in Kolkata and Chennai, while rates in parts of northern India have crossed ₹70 per kg.
To ease the pressure, the Centre has begun releasing buffer stocks through NAFED and NCCF. The government is transporting onions by road and through special Kanda Express trains and selling them at ₹35 per kg in selected cities. The intervention has now been expanded to 19 cities.
