Farmers are cultivating onions everywhere, yet onions are still selling for ₹110 per kg.

The recent surge in onion prices has caused concern among both the public and the government. In cities like Chennai, onions are selling for ₹100-₹110 per kg, while the national average is ₹70-₹80 per kg. In Noida, the price is ₹70-₹75 per kg. Despite government measures like selling onions at ₹35 per kg in government stores and increasing onion supply through special trains, retail prices haven't significantly decreased. Let's explore why this is happening and why prices are so high despite India's onion production.
Onion cultivation takes place in almost all Indian states, during both the Rabi and Kharif seasons. In 2023-24, India's total onion production was 242 million tonnes, which is 20% lower than the previous year. Maharashtra is India's largest onion-producing state, with Lasalgaon in Nashik district being Asia's largest onion market. Maharashtra alone accounts for 43% of India's onion production, followed by Karnataka and Gujarat.
Several factors are contributing to this year's price surge. Unfavorable weather, particularly excessive rainfall during the Kharif season, damaged crops, delayed harvesting, and impacted market supply. Reduced production in 2023-24 has also widened the gap between demand and supply. Increased demand is another contributing factor.