Onion prices under control thanks to steady rabi supply; timely monsoon rainfall boosts kharif crops

Ample and timely monsoon rains recorded across the country have supported kharif crops such as onions this year, and even horticultural crops like tomato and potato. The domestic area targeted for sowing of a host of vegetables such as onion, tomato and potato in the kharif season has increased significantly over the past year, according to an assessment by the Ministry of Agriculture along with state governments. The availability of onion in the domestic market is comfortable notwithstanding marginally lower production of onion in the 2024 rabi season over last year, said the  Ministry of Consumer Affairs, Food & Public Distribution.

The target area under kharif onion this year stands at 3.61 lakh hectares, up 27 per cent over the previous year, with sowing in Karnataka - the top kharif onion producing state in the country, being at 30 per cent of its targeted area of 1.5 lakh hectares amid good progress in other major producing states, it said. 

Kharif season onion production plays an important role in maintaining price stability in the domestic market in the lean months between rabi and peak kharif arrivals. While the rabi crop accounts for roughly 70 per cent of the country's total production, the kharif and late kharif seasons constitute the remaining 30 per cent.

Onion is harvested in three seasons in India:

• Rabi (March-May)
• Kharif (September-November)
• Late kharif (January-February)

The onion currently available in the market is the 2024 rabi season crop (harvested during March-May this year).

The estimated rabi production of 191 lakh tonnes this year is sufficient to meet the domestic consumption of about 17 lakh tonnes per month and continued restraint on export within 1 lakh tonnes per month, the consumer affairs ministry said.

Dry weather conditions prevailing during and after the rabi harvest this year are observed to have helped in lowering any storage loss of onion. "Onion prices are stabilising as the quantity of rabi onion released in the market by farmers is increasing with higher mandi prices and onset of monsoon rains which increases the chances storage loss due to high atmospheric moisture," it added.