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Indian Onion Prices Double as Karnataka Crop Offers Relief
Onions have become much more expensive in India.
Bad rain hurt some onion crops, and hot weather damaged onions kept in storage.
Some farmers are also selling their onions slowly while prices are high.
A new onion crop from Karnataka is expected to reach markets soon.
Some traders think this could lower prices in about two weeks.
Another expert thinks consumers may need to wait until after Diwali for stronger relief.
The government and some states are selling onions at ₹35 per kilogram.
India’s government also has stored onions that can be used to help supply markets.
Onion prices at agricultural markets more than doubled over the past month, reaching ₹32-50 per kilogram in some markets.
Unseasonal rain damaged the late rabi harvest, while heat affected stored onions and caused additional losses.
Trade representatives said farmers were releasing stored onions slowly, although high prices may encourage more arrivals.
Some traders expect Karnataka’s new crop to ease prices within a fortnight, while another market expert expects relief only after Diwali.
The all-India average price was ₹50.5 per kilogram, while some locations reported prices as high as ₹82.
- Who
- Indian consumers, farmers, traders, exporters, and government agencies are affected.
- What
- Onion prices have more than doubled in agricultural markets, with possible relief expected from new crops and government buffer stocks.
- Where
- The price increases were reported across India, including agricultural markets in Maharashtra and Bengaluru.
- When
- Prices rose over the month before September 4, 2026; Karnataka’s crop was expected to reach markets within a fortnight.
- Why
- Unseasonal rain affected the late rabi harvest, heat damaged stored onions, and farmers reportedly released some stocks slowly.
Earlier Relief Expected
Delayed Relief Expected
Timing of price relief
Earlier Relief Expected
Trade representatives Ajith Shah and M. Madan Prakash said Karnataka’s crop could cool prices within about a fortnight.
Delayed Relief Expected
Former Lasalgaon APMC chairperson Suvarna Jagtap said consumers may see meaningful relief only after Diwali, when Maharashtra’s kharif crop arrives.
Availability of stored onions
Earlier Relief Expected
Shah said there should be no shortage once Karnataka’s harvest reaches markets, and current prices may encourage farmers to sell.
Delayed Relief Expected
Jagtap said Maharashtra farmers had almost run out of stocks and that government buffer releases would make consumer relief slower.
Reasons for limited supply
Earlier Relief Expected
Exporters and trade representatives attributed the increase to rain-related crop damage, heat damage in storage, and farmers releasing stocks gradually.
Delayed Relief Expected
The reports also noted that global prices rose after Pakistan had a poor crop, although export demand for Indian onions was limited.
Key facts
- Reported market range
- ₹32-50 per kilogram, according to the Horticulture Produce Exporters Association.
- All-India average
- ₹50.5 per kilogram on Friday, up ₹2 from the previous week.
- Highest reported price
- As high as ₹82 per kilogram in some locations.
- Expected near-term supply
- The new Karnataka crop was expected to enter markets within a fortnight.
- Government retail initiative
- The Centre and some states were selling onions at ₹35 per kilogram.
- Projected 2025-26 crop
- 30.37 million tonnes, compared with 30.77 million tonnes in 2024-25.
- Onion exports
- India exported 3.71 lakh tonnes worth $82 million from April to June.
Quotes
M Madan Prakash
President of the TN Agri Commodities Exporters’ Association
“Onion prices have increased by ₹1,000 in the past week. The late rabi crop was low, and 20-25 per cent of the stored onion got damaged. Any relief will likely be after the new crop comes to the market.”
thehindubusinessline.com
“Onion is ranging between ₹32-50 a kg. The late rabi crop harvest was affected by unseasonal rains. Then, unusual heat in May and June affected stored onions.”
thehindubusinessline.com
Sources
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