Business · India Bureau
India's food inflation hits 7.74% as monsoon weakness drives vegetable costs
Food price pressures intensified in September as deficient monsoon rainfall and El Niño concerns pushed agricultural commodity costs higher. Onion prices more than doubled year-on-year, with inflation in the category surging to over 108% last month.
LSN India ·

India's food inflation accelerated to 7.74% in September, signalling mounting pressure on household budgets amid weather-related supply disruptions. The spike reflects sharp increases across vegetable categories, with onion prices particularly volatile as production challenges persisted across major growing regions.
Onion inflation more than doubled to 108.09% in September, a dramatic jump from 48.78% recorded in August, underscoring the vulnerability of key staple items to weather shocks. The surge follows a period of below-normal monsoon rainfall that constrained planting and crop development across agricultural zones.
Meteorological forecasts pointing to potential El Niño conditions have intensified concerns about future crop prospects. The combination of current supply tightness and weather uncertainties is expected to keep food prices elevated in the near term, complicating the Reserve Bank of India's inflation management efforts.
Broader food basket pressures are being felt across cereals, pulses, and other perishables, though onions have borne the brunt of price increases. Policymakers are monitoring the situation closely as food inflation remains a key driver of overall consumer price movements in the economy.