Malaysians face pricey Indian onions as fresh supply delays cloud Deepavali festival

As Deepavali festival approaches, Malaysian consumers may face higher prices for Indian onions due to a 40% reduction in production caused by drought and delayed monsoon rains in Maharashtra, India's largest onion-producing state. Lasalgaon Agricultural Produce Market Committee Chairman, Dnyaneshwar Kisan Jagtap, warns that the production drop could result in price increases for this essential ingredient in Indian cuisine.

India is the second-largest onion producer globally, after China, with an annual production of 30 million tonnes. In Malaysia, onions are imported from India, accounting for over 50% of the country's supply. Last year, India exported approximately 1.5 million metric tonnes of fresh onions, with Maharashtra contributing to a large portion of these exports.

Despite some recent rainfall, production remains tight, and prices are volatile, posing a financial challenge for farmers during the festival season. Indian authorities expect fresh kharif onion arrivals from other producing states to improve availability in the coming weeks, potentially easing price pressures. Malaysian authorities have capped onion prices from November 4 to 10, with onion prices currently around RM4 per kilogram in local markets.