Stocks of stored summer onions are dwindling, the kharif crop is running over a month late, and wholesale prices have already shot up 160% in less than three months, raising fears of a supply gap that could keep onions expensive well into Nov. Nashik : The onion market is staring at a familiar crunch.
Onion Prices Surge Amid Delayed Monsoon Impact
At Lasalgaon APMC, India’s largest onion market, average wholesale prices surged from Rs 1,740 per quintal on June 22 to Rs 4,550 per quintal by September 5. This marks the highest price level in nearly two years, with the last comparable price recorded at Rs 4,770 per quintal in September 2024.
This sharp increase in prices is attributed to delayed monsoon rains, which have disrupted kharif onion cultivation across key producing states, including Maharashtra, Rajasthan, Karnataka, and Andhra Pradesh. The adverse weather conditions have delayed harvesting and fresh arrivals in the market.
Nashik has storage capacity of around 24 lakh tonnes of summer onions, according to agriculture department estimates. Nearly 80% of those stocks have already been sold, leaving only 5-6 lakh tonnes in storage. Nashik district produces around 65 lakh tonnes of onions annually and is the country’s most influential onion-growing district.
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The Nashik kharif crop is about a month late, so fresh arrivals may begin only in the second half of Nov,” onion trader Manoj Jain said. Officials estimate the remaining stock may last only until the end of Sept or mid-Oct. If fresh arrivals are delayed beyond that, markets could face a three-to-four-week supply squeeze. Traders say the tightening supply has already begun influencing prices. “Arrivals have fallen and many farmers are holding back stocks expecting better rates. Any disruption in its crop cycle is quickly felt in wholesale markets, retail shops and household budgets across India. Download the TOI App.
Against an average kharif acreage of nearly 30,000 hectares, transplantation has covered only about 2,358 hectares so far. Normally, farmers complete around 70% of planting by early Sept. This year, barely 3% has been covered.
As a result, arrivals will remain tight till at least mid-Novr and prices are likely to stay firm,” Gupta said.
R P Gupta, former director of the National Horticultural Research and Development Foundation, said the delayed monsoon has disrupted onion cultivation across major producing states. He said limited quantities of fresh onions have started arriving in markets around Bengaluru and Kurnool, but volumes remain low. Supplies will improve only gradually from late Oct, and regular arrivals may not resume until the end of Nov,” he said. With kharif arrivals delayed, supplies could remain tight through October,” an APMC official said. Stocks may run out sooner than usual,” a market official said.
The impact is most visible in Nashik, India’s onion capital. The delay is likely to create a crucial gap between old stocks and the next crop. Fresh kharif onions usually begin reaching markets from mid-Oct. Agriculture officials now expect significant arrivals only in the second half of Nov, with supplies stabilising from Dec. “Kharif planting has been delayed across Maharashtra, Rajasthan, Karnataka and Andhra Pradesh. “In Karnataka and Rajasthan too, harvesting has been delayed by nearly a month. Market experts warn that if stored summer onions are exhausted before fresh kharif onions arrive in sufficient quantities, the market could face a temporary shortage. The onions currently reaching wholesale markets are largely summer onions harvested in March and April and stored for sale over several months. “There is usually no fresh onion crop between May and mid-Oct. Markets depend entirely on stored summer onions. The situation has been aggravated by unseasonal rain during the summer harvest season, which reduced storability and accelerated spoilage. “The shelf life of stored onions has fallen.
Quality is deteriorating faster, forcing farmers to sell earlier than planned.