- Acreage in Kurnool, Nandyal districts declines to one-tenth of normal levels
- Prices surge, traders increasingly source onions from Maharashtra, Gujarat
Poor rainfall linked to El Nino conditions has significantly reduced onion cultivation across Andhra Pradesh’s Rayalaseema region during the ongoing kharif season, with water scarcity discouraging farmers from taking up sowing. The decline has been most pronounced in Kurnool and Nandyal, key onion-producing districts, raising concerns over lower production and tighter regional supplies. As local arrivals decline, traders have increasingly sourced onions from Maharashtra and Gujarat, while retail prices have strengthened over the past six weeks.
Acreage contracts sharply across key producing districts
Onion cultivation in Kurnool district has declined to less than 2,100 acres this season from the normal 21,000 acres, reflecting a steep reduction in planted area. Inadequate rainfall and depleted groundwater have affected both rain-fed and irrigated cultivation, while nursery growers have also faced losses due to weak demand as fewer farmers opted for transplantation.
A similar trend has been observed in neighbouring Nandyal district, where onion cultivation has been reported on less than 250 hectares against the normal 2,450 hectares during the current kharif season. The sharp decline in acreage across both districts, to roughly one-tenth of normal levels, is expected to significantly reduce overall production.
Lower output increases arrivals from Maharashtra as prices strengthen
Kurnool, which produced around 750,000 t of onions across two seasons last year, is expected to produce less than 100,000 t this season if rainfall conditions do not improve. The reduced local availability has prompted traders to source onions from Maharashtra and Gujarat to meet market demand.
Market sources indicated that around 2,000 t of onions have arrived in Kurnool markets from Maharashtra over the past 15 days. Wholesale prices are currently around INR 2,400 per quintal, while after grading and transportation, onions are retailing at INR 40-50 per kg. Retail prices have increased from around INR 25 per kg nearly six weeks ago to approximately INR 40 per kg, reflecting tightening supplies.
Outlook
The sharp decline in onion cultivation across Rayalaseema is expected to keep regional supplies constrained during the current marketing season. Continued dependence on supplies from Maharashtra and Gujarat is likely in the near term, while any further delay in rainfall or prolonged drought conditions could tighten availability further and lend additional support to onion prices.
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