Why are onion prices high?

Retail onion prices are holding above ₹50 per kg despite government interventions due to supply constraints. The rabi crop, which accounts for about 60-70% of annual onion production, is estimated to have declined 5-6% from a year earlier, mainly because low prices in previous season led farmers to sow less. Unseasonal rainfall in Maharashtra during March-April damaged late-harvested rabi onions.