Onion prices have risen sharply across India in August 2026, putting pressure on household budgets ahead of the festive season. The all-India average retail price reached ₹43.53 per kg on August 24, up 59% from ₹27.37 per kg a year earlier. The average wholesale price also climbed 68% year-on-year to ₹35.58 per kg.
Onion Prices in Major Indian Metro Cities
Latest reported retail prices show significant differences between cities:
- Metro City Onion Price (₹/kg)
- Delhi ₹55
- Mumbai Around ₹85*
- Kolkata ₹53
- Chennai ₹60
- Bengaluru Around ₹70*
- Hyderabad Around ₹55*
*City-level figures can vary substantially by market, quality and retailer. One retail-price tracker reported higher figures for Mumbai and Bengaluru, while government-reported city averages can differ.
Chennai Sees Sharp Year-on-Year Increase
Among the major cities specifically reported in the latest government-linked data, Chennai's onion price reached ₹60 per kg, compared with ₹33 per kg during the same period last year. Delhi was at ₹55 per kg, up from ₹35, while Kolkata stood at ₹53 per kg.
The price increase is particularly noticeable during August and September, which are traditionally periods when onion supplies can tighten before the arrival of fresh crops.
Why Are Onion Prices Increasing?
The recent increase is linked mainly to lower arrivals and supply constraints, with weather-related issues also affecting production, storage and transportation. At the major Lasalgaon wholesale market in Maharashtra, onion prices crossed ₹4,250 per quintal on August 25, reflecting tighter supplies.
The government has also attributed the rise to a decline in output and is releasing buffer stocks to increase supplies in high-demand markets.
Government Launches Kanda Express
To control prices, the Centre has expanded its Kanda Express initiative, transporting onions from Nashik to major consumption centres. The government is using around 1.21 lakh tonnes of buffer stock, while the number of dedicated railway rakes has been increased from 14 to 86.
In Delhi-NCR, the government plans to sell buffer-stock onions at a subsidised ₹35 per kg through mobile vans. Around 800 tonnes of onions are being supplied initially to provide relief to consumers.
With additional supplies entering major markets, the government expects onion prices to moderate in the coming days.
