India: Onion crop damage in Karnataka raises concerns over further price rise

• Drought damages 62,985 hectares of onion crop across 124 taluks
• Weak kharif yields could delay supply and keep onion prices elevated

Onion prices in Karnataka remain firm as drought conditions have damaged a large part of the state’s kharif crop. According to news reports, wholesale onions at Bengaluru APMC are selling at INR 50-55/kg, while retail prices are ranging between INR 65-70/kg.

Drought threatens kharif onion output

According to Karnataka State Department of Horticulture (KSDH) data cited in news reports, onion sowing for the 2026-27 kharif season covered 1,41,256 hectares against a target of 1,50,000 hectares, or around 94% of the target. However, 124 taluks have been declared drought-affected, and a joint KSDH and Karnataka State Natural Disaster Monitoring Centre survey found that 62,985 hectares of onion crop suffered more than 50% damage.

An additional 53 taluks were declared drought-affected on September 22, with damage assessment still underway. The KSDH said sowing was 6% lower than last year and that weak rainfall could result in poor yields despite high sowing coverage.

Delayed kharif arrivals could prolong supply tightness

According to news reports, Karnataka’s kharif onion harvest is expected to be affected by poor rainfall and widespread crop damage. The state normally harvests kharif onions during September and October, making this crop important for fresh market supplies. Lower yields or delayed arrivals could increase Karnataka’s dependence on onion from Maharashtra and keep prices elevated in the near term.

Buffer releases provide limited relief

The Union government’s Kanda Express intervention, which supplies onions at INR 35/kg, has had limited impact on Karnataka prices, according to the Bengaluru Onion Merchants’ Association cited in news reports. Transportation, storage and labour costs, along with dependence on Maharashtra supplies, continue to influence prices.

Outlook

Fresh kharif arrivals will remain the key factor for price direction. If drought-related losses significantly reduce arrivals, Karnataka may continue depending on Maharashtra supplies, keeping prices firm. A stronger-than-expected harvest could improve availability and moderate prices.