In September 2026, a kilogram of onion cost 93% more than last year, while sugar prices were up 28% and rice was up about 8%, on average, according to ISignal’s Food Price Watch dashboard, which uses Department of Consumer Affairs data. This is in a year with the fourth lowest rainfall since the turn of the century, as the country approaches the withdrawal of the monsoon with a 13% deficit.

Sustained low prices in past years pushed farmers away from onion, experts say, while the government lists factors such as increased demand and speculation for the increase in sugar prices.

“Extreme climate events are raising agricultural risk, disrupting the global food system, increasing the chance of multiple breadbasket failure and pushing up food prices around the world,” a September 2026 analysis by Zero Carbon Analytics noted, adding that “historically unprecedented heat, drought, rain and cold are causing food price spikes across all continents”.

It also noted that perishable foods such as fruits and vegetables can face larger price swings because of their limited shelf life and more vulnerable supply chains.

ISignal reached out to the Department of Consumer Affairs for comment. We will update this report when we receive a response.

Onion farmers cut back after low prices

The retail price of onion in September was Rs 52.8, the highest monthly average price since November 2024. Further, since 2014, average monthly prices were higher than this on only eight occasions, our analysis shows. Prices more than doubled since May this year.

Last September, retail prices of onion were Rs 27.4, the lowest for that month since 2022.

“Onion prices remained low for two to three years. At times, the farmer could not even recover the cost from harvesting the onion, transporting it and taking it to the market, resulting in a negative return,” said Sominath Gholwe, an agricultural researcher. “Because of this, some farmers turned away from onion cultivation.” He explained that it now costs at least Rs 12.5 to produce and bring 1 kg onion to the market, up from around Rs 10.

Onion crop is harvested in three seasons: rabi in........

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