Onion prices are expected to remain high despite temporary relief from government buffer stocks sold at ₹35/kg. The ongoing price surge is largely driven by a sharp decline in kharif onion cultivation across Karnataka this season.
“The drop in onion acreage in current kharif season indicates there may be constraint in supply till next rabi-grown onion arrives in market from next April. Normally, the rabi-grown onion with higher shelf life meets the demand till Diwali after which the kharif-grown onion enters the market,” said Satish Bhonde, an expert and former additional director of research institute NHRDF.
Besides, there is also delay in the sowing/transplanting due to lack of sufficient rains, he said, adding that its impact is visible as wholesale price has touched ₹40/kg now.
According to sources, total area under kharif onion so far has reached 1.30 lakh hectare (lh) as against 2.06 lh in the year-ago period. While farmers in Maharashtra and Madhya Pradesh have maintained the acreage at par with year-ago levels of about 30,000 hectares and 12,000 hectares, respectively, there is a big drop in Karnataka, sources said.
Onion farmers have planted the crop on 68,000 hectares as against 90,000 hectares year-ago in Karnataka, sources said, adding that the fall is mainly due to water scarcity. The State government has already declared drought in 101 talukas (tehsil) out of 239 and more could be added in the list.
In Rajasthan, too, sowing for late Kharif crop will start soon and may continue till first week of October as farmers have missed Kharif season, sources said. Onion acreage in Rajasthan was 29,500 hectares in kharif and late kharif seasons last year, and it may reach up to 40,000 hectares this year due to high prices. These four States are major producers of onion in kharif season.
Acreage up
In 2025-26 crop year (July-June), India’s onion acreage increased to 20.14 lh from 19.68 lh in the previous year. However, production was almost stagnant at 30.74 million tonnes (mt).
Currently, all-India retail prices of onion are between ₹23/kg and ₹87/kg with an average of ₹50/kg, consumer affairs ministry data show. A month ago, the average price was ₹35/kg. Export of onion during current fiscal (April-June) was 3.71 lakh tonnes (lt) worth $82.12 million as against 3.63 lt worth $93.12 million in the corresponding period in 2025-26. Officials, however, do not blame higher export as a factor for the current prices rise and insist on adequate availability.