New Delhi, India – Days after sugar prices increased sharply, the price of onion, an essential commodity whose prices are considered a politically sensitive topic, nearly doubled from last year’s. On September 1, the all-India average price was ₹49.59 a kg, registering an over 74% increase from the ₹28.48 on the corresponding day in 2025.
On August 1, the price was ₹35.47 a kg. In Kolkata and Chennai, the price has now reached ₹60. What has worried the Centre is the fact that over the past two weeks, the price has gone beyond ₹70 in certain retail markets, particularly in North India. This increase is unprecedented, and according to some officials, this “sympathetic price rise,” along with that of sugar, has left the Centre searching for reasons behind this surge, as the Opposition says the government has failed to curb the price rise of essentials.
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The sharp increase in onion prices follows a similar trend in sugar, which rose by nearly 40% in some states. The government has attributed the rise in essential commodity prices to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to crops, tightening global supplies, and speculation and hoarding by some sections of the industry. The political sensitivity of onion prices is well established in India, given their role in shaping public opinion and electoral outcomes. The coming weeks will determine whether government intervention can stabilize the market and provide relief to consumers.
