Rains Rot India's Onions, Prices Soar Past Rs 60

India's onion crop faced severe damage from unseasonal rains during the March-April harvest, leading to widespread rotting. Despite producing over 307 lakh tonnes, significantly more than domestic demand, heavy moisture absorption and subsequent storage conditions in June-July allowed fungus to develop. Normally losing 25% of its crop, India is now estimated to have lost 35-40% of its onions, totaling 110-120 lakh tonnes, due to rot.

This substantial loss has driven up the cost for farmers, as the entire expense of cultivation must be recovered from the remaining usable produce. Consequently, good quality onions reaching markets now cost farmers Rs 30-32 per kg to make a profit. Farmers' associations are demanding wholesale prices of at least Rs 40 per kg and are warning of protests if the government intervenes to lower prices.

In response to the sharp price increases, the central government has initiated a plan to release its onion buffer stock. Special 'Kanda Express' trains are transporting thousands of tonnes of onions to major cities, including Delhi, Chennai, Kochi, and Guwahati. The government is subsidizing these sales to consumers at Rs 35 per kg, aiming to boost market supply and curb hoarding.