Onion prices surge to ₹70 per kg amid supply shortages

Retail onion prices have surged to between ₹60 and ₹70 per kilogram, causing financial strain for consumers. Despite government efforts to stabilize the market by selling buffer stocks through agencies like NCCF, NAFED, and Kendriya Bhandar at a subsidized rate of ₹35 per kilogram, retail prices remain high due to a significant supply gap.

The shortage is attributed to a transition period between the Rabi and Kharif crop seasons, where older stocks are depleting before new harvests arrive in sufficient quantities. In regions like Andhra Pradesh, the crisis is exacerbated by a severe supply collapse at major trade hubs such as the Kurnool Agricultural Market Yard.

Climate-related factors, specifically El Niño-driven weather conditions, have led to prolonged dry spells and dwindling groundwater. This has resulted in a dramatic reduction in onion cultivation acreage and yields. For instance, in Kurnool district, cultivation dropped from 24,000 hectares last year to 11,000 hectares this season, with some farmers reporting yields at only 20% of normal levels.