Onion Price Hike: Will Prices Soar in Maharashtra? What’s Really Behind the Surge?

Consumers may soon face a sharp increase in onion prices, following the destruction of large-scale onion crops in Maharashtra and other parts of southern and central India due to unseasonal heavy rains in May. Experts are warning of a likely surge in prices in the coming weeks as the supply chain tightens amid continued demand. The heaviest impact has been observed in key onion-producing districts such as Nashik, Jalgaon, Dhule, Pune, and Solapur, where pre-harvest crops have been decimated by unexpected rains that began around May 6. The Maharashtra State Onion Producers Association has reported that thousands of tons of onions have either rotted in fields or spoiled due to a lack of proper storage facilities.

Farmers Reeling Under Crore-Worth Losses
According to the association, farmers have suffered losses amounting to crores of rupees. In a letter addressed to Maharashtra Deputy Chief Minister Devendra Fadnavis, the group demanded compensation of Rs 1 lakh per acre for the crop damage and a subsidy of Rs 2,000 per quintal for onions that were harvested but spoiled in storage. "The situation is dire. Farmers are left with nothing. Without government assistance, this crisis could worsen not only for growers but also for consumers facing rising prices," said Bharat Dighole, President of the Onion Producers Association.

Supply Shock May Push Prices Higher
With supply significantly disrupted, onion prices in wholesale and retail markets are expected to increase. Experts note that when supply drops but demand remains stable, price inflation is inevitable — a trend India has seen multiple times over the past few years, especially with onions, a staple in Indian households. Currently, there has been no official response from either the central or state government regarding compensation or price control measures.

Also Read: ‘Impulsive and Hurried’: Bombay HC Terms Anchor Group’s Hemang Shah’s Arrest Illegal; Slams Police for Acting in Haste

Call for Transparent Procurement and Buffer Stocking
The Association has urged the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation (NCCF) to step in and procure onions directly from farmers to stabilize the market. They have requested that the government purchase at least 3 lakh tons of onions at Rs 3,000 per quintal for buffer stocking purposes.

Without such intervention, the dual crisis of farmer distress and market inflation could deepen, with both ends of the supply chain bearing the brunt.