Onion Inflation Rose From 22.5% in July to 48.3% in August. Here’s Why

Onion inflation rose from 22.54 percent in July to 48.27 percent in August 2026, according to the government’s Consumer Price Index data.

When onion prices rise, the first question is usually simple: Why are onions suddenly so expensive?

The answer, however, is rarely just one thing.

On 15 September, the all-India average retail price of onion stood at Rs 53.92 a kg, up 48 percent from a month earlier and 94 percent from a year earlier.

India produces millions of tonnes of onions every year, but the quantity reaching markets at a particular time can change sharply depending on weather, crop cycles, storage losses and farmers’ planting decisions.

This year, disruptions to production and the timing of supplies have once again affected the onion market.

The weather can upset the supply

India’s onion supply comes mainly from the rabi crop, which accounts for roughly 60 to 70 percent of total production. These onions are harvested between March and May and stored to supply markets for several months.

This year, however, weather disruptions affected both production and the timing of supplies.

Unseasonal rain in Maharashtra damaged some late-harvested onions, while a delayed monsoon affected the sowing of the next kharif crop.

In Maharashtra’s Nashik district, one of India’s major onion-growing regions, kharif sowing was reported to be around 15 days late.

That creates a gap.

When old stocks begin running down and the new crop is not ready, fewer onions reach the market. Wholesale prices can rise quickly, and the increase eventually reaches consumers.

A good harvest does not guarantee good supply

There is another problem that happens after harvesting.

Onions need to be stored for months before the next major crop arrives. But storage losses can be significant. The Indian Council of Agricultural Research estimates that 30 to 40 percent of onions can be lost during storage, with losses becoming even higher during adverse weather conditions.

Every onion that rots in storage is one less onion available for the market.

Poor storage can therefore tighten supply even when production figures appear healthy. This is one reason farmers and researchers are increasingly looking at better storage facilities and technologies that can detect temperature and humidity changes before large quantities of onions spoil.

Farmers respond to yesterday’s prices

Onion cultivation also follows a cycle of its own.

When farmers receive poor prices, many have less incentive to plant onions during the following season. But if acreage falls and demand remains consistent, supplies can tighten and prices can rise again.

Maharashtra, which produces around a third of India’s onions, has experienced this cycle repeatedly.

Farmers have to make planting decisions months before they know what prices will look like at harvest.

This means today’s expensive onion can partly be a consequence of yesterday’s cheap onion.

Government steps in when prices rise

Because onions are a staple in Indian kitchens, sudden price increases can quickly become a household concern.

The government uses measures such as buffer stocks, procurement and changes in export policy to manage supplies.

When prices rise, onions from the government buffer can be released into markets to increase availability.

Export restrictions have also been used in the past to protect domestic supplies. But such measures can create difficulties for farmers when prices are low because exports can provide an additional market for their produce.

So why are onions getting expensive?

There is no single reason.

The current price rise is largely about the availability of onions at a particular time rather than India’s total annual production. Smaller or damaged rabi supplies, storage losses, delayed kharif sowing and weather disruptions can all reduce the quantity reaching markets when consumers need it.

But there is another part of the story that begins much earlier — before an onion is even grown.

It begins with the seed.

Before the onion, there is a bee

India produces around 15,000 tonnes of onion seeds every year, and nearly 70 percent of this seed production depends on honey bees.

Onion plants need pollinators to produce seeds. As bees move from flower to flower, they carry pollen between plants, helping produce the seeds that farmers will eventually use for future crops.

That makes pollination an important, but often overlooked, part of the onion supply chain.

And this process is becoming harder to sustain.

Pesticides, monoculture farming and the loss of indigenous trees are reducing food and nesting spaces for bees. In Maharashtra, onion seed growers have reported fewer bees visiting their fields, making pollination more difficult.

The problem extends beyond onions. Healthy pollinator populations are important for the production of several fruits and vegetables as well.

Giving bees a safer place to live

In Pune, Amit Godse, known as the ‘Bee Man’, is trying to address part of this problem.

Godse left a comfortable career and began rescuing bee colonies despite having no previous experience in beekeeping. Over the years, he learnt to work with India’s five bee species and developed ways to safely relocate their colonies.

Through his ‘Pest to Pet’ initiative, he has rescued more than 17,000 hives and relocated colonies to farms and other suitable spaces.

He is also planting 5,000 trees in Pune and building bamboo bee homes to support bee diversity.

The connection with onions is simple.

Before an onion reaches a mandi, it begins with a seed. And before that seed can be produced, flowers need pollinators.

So the journey of an onion — and sometimes the price we pay for it — can begin much earlier than the market.

It can begin with rainfall, storage and farmers’ planting decisions.

And even before all of that, it can begin with a bee moving from one tiny onion flower to another.

Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: thebetterindia.com