In response to the rising vegetable prices triggered by adverse weather conditions, India is set to increase its kharif onion acreage by 27% to 361,000 hectares this year, according to a government statement released on Friday. This strategic move comes as part of a broader effort to stabilize the market and ensure sufficient supplies of essential vegetables like onion, potato, and tomato.
Surging Prices and Government Intervention
The government’s decision follows a notable surge in vegetable prices, with the average retail price of onions across India reaching ₹43 per kilogram, marking a 68% year-on-year increase as per data from the consumer affairs department. In Karnataka, the leading kharif onion-producing state, 30% of the targeted 150,000 hectares has already been sown, with significant progress reported in other major states. Despite a slight decrease in rabi onion production for 2024-25, the domestic market remains stable due to higher releases from the rabi harvest.
Importance of Kharif Onion Production
Onions are harvested in three main seasons: rabi (March-May), kharif (September-November), and late kharif (January-February). The rabi crop, accounting for approximately 70% of total onion production, plays a vital role in maintaining price stability during lean months. The estimated rabi onion production for 2024-25 stands at 19.1 million tonnes, which is sufficient to meet the domestic consumption of about 1.7 million tonnes per month, with controlled exports of up to 100,000 tonnes per month.
Impact of Weather and Monsoon Rains
This year’s dry weather during and after the rabi harvest has helped reduce storage losses, contributing to the stabilization of onion prices as more rabi onions are released into the market. The onset of monsoon rains, which typically increase storage loss risks due to high moisture, has also impacted market dynamics. The India Meteorological Department (IMD) expects above-normal precipitation across most parts of the country in July, further boosting kharif crops, including onions.
The timely arrival of the monsoon is crucial for India’s agricultural sector, as 56% of the net cultivated area and 44% of food production depend on monsoon rainfall. Normal precipitation is essential for robust crop production and stable food prices, especially for vegetables.
Expansion of Kharif Potato and Tomato Areas
Alongside onions, the government is targeting a 12% increase in the area under kharif potato this year. Himachal Pradesh and Uttarakhand have nearly completed their targeted sowing areas, while Karnataka and other states are progressing well. According to the agriculture ministry, 27.3 million tonnes of rabi potatoes are stored in cold storage, sufficient to meet market demand. Kharif potatoes from several states will augment market availability from September to November.
For kharif tomatoes, the targeted area has been increased to 272,000 hectares from 267,000 hectares last year. Good crop conditions are reported in key areas like Chittoor in Andhra Pradesh and Kolar in Karnataka, with substantial improvements expected in major producing states including Madhya Pradesh, Karnataka, Uttar Pradesh, Gujarat, Maharashtra, and Tamil Nadu.
India’s strategic move to increase the kharif onion acreage by 27% is a critical step towards stabilizing vegetable prices and ensuring sufficient supplies amid adverse weather conditions. The government’s proactive approach, supported by timely monsoon rains and favorable crop conditions, is expected to bolster production and maintain market stability for onions, potatoes, and tomatoes in the coming months.
