Onion prices have appreciated by 20% in Pune in the western India state of Maharashtra after heavy rains hindered market access.
Ironically, the state is having a production glut that could satiate the surging monthly all-India onion demand.
But this surplus is in storage rather than markets, as farmers cope with the aftermath of an unusual heavy rain timing.
As a result, prices in Pune had notched up to 14 rupees ($0.16) a kg by May 31, 2025, up from 11.50 rupees ($0.13).
Analysts expect the rates to hike further after India scrapped a 20% export duty, effective April 1, 2025.
The duty removal follows successive export curtails, beginning with the imposition of an export price floor at $800 a tonne in late 2023. Then there was an indefinite extension of an export ban in February 2024. In May 2024, the government ended the ban but imposed a 40% duty that later reduced to the most recent 20%.
Another hit on price will be the government’s intent to procure 0.3 million tonnes of onions for the 2025-26 market year.
By May 12, procurements were ramping up, with farmers receiving market prices of 29 rupees ($0.34) per kg. This was far above the then mandi (wholesale) rates in Maharashtra and elsewhere at 10 to 12 rupees ($0.12-14) a kg.
Now that rains have quashed prospects, farmers expect retail prices to rise above the current 20 rupees ($0.23) a kg.
For this reason, some quarters in Maharashtra are reaching out to the state government to compensate them for field losses.
According to CNBCTV on June 2, farmer unions from Nashik district were requesting 100,000 rupees ($1,170) per acre compensation.
Whatever next, it is clear that prices are bound to temporarily increase unless other production states fill in the gap. To learn more on the importance of Maharashtra as a major onion-producing state in India, peruse below stats.
Maharashtra Onion Statistics
Situated in the west of India, Maharashtra is the biggest onion-producing state with at least 18% national output share. In 2014-15, 2015-16 and 2016-17, the state represented 28.32%, 31.19% and 30.41% Union production shares, respectively. According to the federal government, the biggest production year in the above 6-year cluster was 2016-17.
Which districts have the most area under onions in Maharashtra?
The districts of Nashik, Satara, Pune, Ahmednagar, Solapur and Jalgaon account for 94.68% of all onion area in Maharashtra.
How do onion prices in Pune compare with those of other big cities in India?
Prices of onions in Pune are affordable in harvest months but expensive during the Monsoon, around October. For example, according to governmental price data for October 2017, Pune recorded higher wholesale prices than other cities. Interestingly, the city recorded lower retail rates than other metropolises during the same period. While the October wholesale price was at 3,000 rupees ($35.10) a quintal, that in Mumbai was only 2,850 Rupees ($3,334). Only Kolkata and Chennai, each at 3,500 Rupees ($4,095) a quintal, sold at higher wholesale rates. However, Pune’s retail rates in October, at 33 Rupees ($0.39) per kg were less than in most cities.