Food Prices Soar: Onion Up 100% Amidst Monsoon Woes

Retail prices for essential agricultural commodities, including rice, sugar, and mustard oil, are considerably higher than the previous year as kharif crop harvesting progresses. Experts attribute this increase to expected lower kharif production, influenced by a deficient monsoon potentially impacted by El Nino, and elevated global prices.

Consumer food inflation climbed to 7.74% in September, driven by rising costs of onions, ginger, garlic, sugar, chicken, and edible oils. Onion prices have seen a 100% year-on-year increase, averaging Rs 53.42/kg, with Delhi-NCR prices surpassing Rs 65/kg. To mitigate this, the government is releasing onions from its buffer stock at subsidized rates.

Mustard oil prices rose 11% year-on-year to Rs 208.18/kg. Sugar prices spiked in August due to reduced production in the 2025-26 season, prompting the government to allow raw sugar imports. Rice prices increased by 12% year-on-year to Rs 48.38/kg, with retail inflation in rice at 8.25% in September.

Despite robust buffer stocks for pulses and wheat, retail prices for chana dal have increased by 8% year-on-year. Meanwhile, winter crop sowing, including wheat, pulses, and oilseeds, has begun slowly, with area coverage down 46% by October 30, 2026, although it is expected to accelerate as the month progresses.