Onion prices in India are going up quickly. As of September 1, 2026, the average price is ₹49.59 per kg, which is over 74% higher than last year. In cities like Kolkata and Chennai, prices have hit more than ₹60 per kg, and some northern areas are seeing prices over ₹70. This spike has caused worries about supply and quality. Why Are Onion Prices Rising Now?The current onion price increase is not simply the result of a nationwide production shortage. Government estimates put 2025-26 onion production at around 307.37 lakh metric tonnes, broadly similar to the previous year's output. However, weather-related damage, storage losses, delayed kharif arrivals and seasonal demand have affected the amount of good-quality onion reaching markets at the right time. These factors have tightened available supplies and pushed prices higher.National average onion price reached ₹49.59 per kg on September 1.Prices were over 74% higher than the same date last year.Heavy and unseasonal rainfall damaged onion quality and storage life.Kharif onion arrivals have been delayed in several producing regions.Seasonal and festive demand is adding pressure to available supplies.Weather Damage Reduced SupplyOnion prices are going up mainly because of uneven rainfall. While there’s still a lot of onions, some got damaged during harvest, affecting their quality and how long they last. Plus, the government's backup stock also took a hit, meaning fewer onions can be sold quickly. Sowing for the next crop is delayed in some areas, leaving a gap before new onions come in. With the festive season approaching, demand is rising when supply is already tight. Government Steps In To Control PricesThe Centre is now moving onions from its reserve stock with trucks and special trains, known as Kanda Express. They claim there are plenty of onions available and are selling them for ₹35 per kg in 19 cities. More than 30 trucks are out there to help reduce high prices and ensure everyone can buy them. Key HighlightsAll-India average onion price reached ₹49.59 per kg on September 1.The annual increase was more than 74%.Production remains above 307 lakh metric tonnes for 2025-26.Weather damage has affected onion quality and storage.Delayed kharif arrivals are creating additional supply pressure.Government buffer stocks are being released at ₹35 per kg in selected markets.When Could Prices Ease?Onion prices have gone up due to seasonal demand, weather issues, storage problems, and delays in fresh onions arriving. While government efforts might help with supply in big cities, prices may stay unstable until more fresh kharif onions are available. So, shoppers could still notice price differences in various places. Disclaimer: This article is provided for knowledge and news-information purposes only and should not be treated as financial, business or investment advice.
