Onion prices doubled in August, will prices increase further till Diwali?

While earlier the price of sugar across the country was becoming heavy on people's pockets, now the rising prices of onion have also spoiled the kitchen budget of the common man. Onion prices have suddenly increased in retail markets in August and its maximum price has reached Rs 77 per kg. Due to this rise in the prices of onion, the concern of the people has increased that its prices might increase further till the coming festive season i.e. Diwali.

 

In view of the situation after the sudden increase in inflation, the Central Government has decided to run Kanda Express train from the buffer stock. Through these trains, onion supply will be delivered quickly to the people at concessional rates. Let us tell you that last year also the government had started Kanda Express for the supply of onions.

 

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How did onion prices increase in a month?

According to data from government website fcainfoweb.nic.in, the average retail price of onion on August 4 was Rs 35.55 per kg. On August 11, there was a slight increase and the price became Rs 35.99. After this, the average price of onion increased to Rs 37.61 per kg on August 18 and to Rs 44.72 per kg on August 25. That means, only between 18th and 25th August, the average price of onion increased by Rs 7.11 per kg. During this period, the maximum retail price of onion also increased from Rs 70 to Rs 77 per kg.

 

Retail trend of Diwali season from August in last three years

  • According to government data, the all India average retail price of onion in August 2023 was Rs 29.86 per kg. It reached Rs 33.38 per kg in September, Rs 37.26 in October and Rs 58.99 per kg in November. That means in the month of Diwali the price was much higher than in August.
  • The average price of onion during August in 2024 was Rs 45.03 per kg. It increased to Rs 51.17 per kg in September and reached Rs 54.32 per kg in October. That is, till Diwali, onion kept becoming expensive.
  • The story was completely different in 2025. The average price of onion was Rs 28.24 per kg in August, which came down to Rs 27.50 in September and Rs 26.54 per kg in October. That means, instead of increasing, onion prices continuously decreased from August to Diwali in 2025.

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A major reason for this was the government's initiative to improve the supply. The government transported onions from one place to another through Kanda Express. Under this, in 2024-25, about 12,000 tonnes of onion was sent through 14 rakes to 5 cities. Due to this, the supply of onion was maintained in the market and the pressure on prices was reduced. This year also the government has adopted the Kanda Express initiative to ensure better supply of onions. With this, the government hopes that onion prices will remain under control during the festive season till Diwali and there will not be much burden on people's pockets.

Why do onion prices start increasing at this time?

Onion prices often increase in August-September because the supply of onion in the market reduces during this period. The stock of the old Rabi crop starts decreasing, while the arrival of the new Kharif crop has not yet started completely. This year too, there has been a delay in arrival of Kharif onion from South India. At the same time, onion sowing was affected due to monsoon in Maharashtra, due to which the pressure on supply has increased further. To keep the prices under control, the government has decided to release onion in the market from its buffer stock of 1.21 lakh tonnes. Besides, the supply of onion is also being increased through Kanda Express.

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