What’s behind the sudden surge in onion prices? | Explained
Onion prices in India have surged significantly, with retail rates in some cities exceeding ₹70 per kilogram. The government is investigating the cause, citing factors like poor harvest quality in Maharashtra and seasonal demand fluctuations.
Why it matters
Onions are a staple commodity in the Indian diet, and sharp price spikes often lead to significant public discontent and inflationary pressure on the economy.
The story so far: Days after a sharp increase was seen in sugar prices , the price of onion, an essential commodity, nearly doubled in the retail prices compared to last year. On September 1, the all-India average price for a kilogram of onions was ₹49.59, registering over 74% increase from ₹28.48 on the same day in 2025.
A month ago, on August 1, the rate of onions was ₹35.47/kg. Meanwhile, in Kolkata and Chennai, the price has now reached ₹60/kg. What has worried the Centre is the fact that over the last two weeks, the price has gone beyond ₹70 in certain retail markets, particularly in the Northern India. This increase is unprecedented, and according to some officials this “sympathetic price rise” along with sugar, has left the Centre searching for reasons behind this surge.
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