Onion prices sting across India during festive season; fresh arrivals may ease rates

Onion prices continue to remain high as fresh arrivals from the harvest are yet to pick up, with retail rates ranging from ₹50 to ₹65 a kg, nearly double the levels recorded at this time last year.

Prices are expected to ease towards the end of October as harvesting gathers pace in Maharashtra, Madhya Pradesh, Andhra Pradesh, Telangana and Karnataka.

Nearly 50 per cent of India's onion production comes from the April-May harvest season. A portion of this produce is stored and released into the market during the monsoon months to meet demand.

However, higher temperatures this year pushed up demand, leading to faster stock depletion. Lower production and the government's failure to intervene effectively in the market have also contributed to the price surge.

Although onions are being imported from countries including Egypt, supplies have yet to match demand, particularly during the ongoing festive season.

Prices are expected to come down once fresh arrivals increase later this month, easing the supply constraints that have kept the vegetable expensive.