Onion prices have surged across India as supply shortages and seasonal factors drive up key grocery costs, prompting government intervention and fresh political criticism.

According to data from the Union Ministry of Consumer Affairs, the national average retail price of onions reached 43.53 rupees ($0.70 CAD) per kilogram on Aug. 24, marking a 59 per cent increase compared to 27.37 rupees recorded on the same date last year. Wholesale prices also spiked from 21.23 to 35.58 rupees per kilogram over the same period.

Prices in several major urban centres have significantly surpassed the national average. Onions were selling for up to 60 rupees per kilogram in Chennai and parts of Punjab, while fetching roughly 55 rupees in Delhi and 53 rupees in Kolkata.

To stabilize the market and boost supply, the federal government has begun distributing buffer stock from Nashik, Maharashtra, to primary consumption hubs via rail, dubbed the "Kanda Express." The initial shipment phase will deliver onions to cities including Delhi, Chennai, Madurai, Ernakulam, and Guwahati, where they will be retailed at a subsidized rate of 35 rupees per kilogram.

Government officials attribute the price hike primarily to weather-related disruptions and supply chain bottlenecks, expressing optimism that releasing emergency reserves will offer consumers near-term relief.