Onion prices have risen significantly, causing concern among consumers. According to reports, the cost of onions in the country increased by approximately 20% over the past month. This sharp price jump is felt in cities such as Delhi, Chennai, Guwahati, and Kochi, where onions in retail trade reach 60-65 rupees per kilogram.
Following this substantial price increase, the government issued an official statement. The Modi Govt reported that the country has sufficient onion stocks to meet domestic demand in the coming months, and it also explained the reasons for the price hike and shared plans for stabilizing pricing.
The government clarified the situation, forecasting that onion production in the fiscal year 2025-26 will be around 307.37 million metric tons (LMT), comparable to last year's figure of 307.67 LMT. It was emphasized that onions are available in sufficient quantities and can cover domestic demand in the coming months.
According to the government, seasonal price increases for onions are typically observed in August-September. The main factors behind this phenomenon, besides festive demand, are weather conditions and the supply chain situation.
To curb the continuous rise in onion prices, the government has taken several measures and unveiled its plan. The government is conducting controlled supplies from buffer stocks of onions to prevent unnecessary price fluctuations.
Furthermore, transportation and dispatch of onions from Nashik began on Monday (August 24th). In the initial phase, Chennai, Madurai, Delhi, Kochi, and Guwahati were included. Under the 'Kanda Express' program, about 88,000 metric tons of onions were delivered to 16 major cities using 86 railway rakes in 2025-26, and additional cities will be connected as needed.
It is important to note that potatoes, onions, and tomatoes are vegetables used daily in kitchens, so the rise in onion prices directly affects household budgets. Reports indicate that the Department of Consumer Affairs recorded an average retail price for onions of about 42 rupees per kilogram last Saturday, which is 19-20% higher than a month ago. Nevertheless, in retail markets across many cities, including Delhi-NCR, onions are being sold at a price of 60-65 rupees per kilogram.