India onion prices decline as fresh Kharif supplies arrive

Onion prices in India are beginning to moderate due to increased market arrivals and the start of fresh Kharif supplies. The Ministry of Consumer Affairs, Food & Public Distribution reported that the weighted average mandi price in Maharashtra fell by nearly 13 per cent between September 16 and October 3.

Retail prices have also seen a decline in 126 cities over the last two weeks. Fresh supplies are arriving from major producing states, including Karnataka, Andhra Pradesh, and Rajasthan. The production outlook for the Kharif crop is positive, with acreage estimated to be approximately 5 per cent higher than last year.

This easing follows a period of significant price volatility. In September, onion prices had reached levels nearly 93 per cent higher than the previous year, driven by factors such as low rainfall and previous years of low prices that discouraged farmers from cultivation. Favorable rainfall forecasts from the IMD are expected to support the current harvesting and drying processes.