Farmers Hold Onto Onion Stocks as Prices Stay Steady

Farmers in Nashik, India still hold onto stocks of Unhal Kanda (onions), although estimating the exact quantity is challenging. Farmers plan to sell gradually, choosing not to release significant quantities just yet. Onion prices in the state remain stable, ranging from USD 0,16 to USD 0,54 per kg in Tasalgaon, the key benchmark mandi. Although prices have slightly dipped, they continue to hold steady at an average of USD 0,49 per kg.

Rain Boosts Sowing, But New Onion Crop Faces Risks

With improved rainfall this season, Nashik farmers have increased sowing for monsoon crops compared to last year. New onions should reach the market after Diwali, although some concerns linger about potential crop damage from unseasonal rains. Southern India has already seen new onion arrivals, though reports suggest recent rains have caused some crop damage.

Can Removing Export Duties Help Onion Farmers Earn More?

A major factor influencing onion prices is the 20% export duty on onions, which has limited international trade. If the government removes this duty, farmers could secure better prices in the upcoming season. Currently, exports remain restricted, but trade is expected to resume after the festive season. The Bangladesh border, which closed due to Durga Puja and Navratri, is likely to reopen soon, creating more export opportunities.

Rajkot Traders Expect Price Drop After Diwali

Trader Prafulla Rangani from Rajkot (Gujarat) has noted that onion prices are stable, with;

• yellow leaf onions priced between USD 0,08 to USD 0,11 per kg
• new red onions ranging from USD 0,07 to USD 0,10 per kg.

The arrival of new onions in Rajkot remains limited, but volumes are expected to rise significantly after Diwali. When dry onion supplies peak, prices could fall by USD 0,06 to USD 0,12 per kg.

Saurashtra Farmers Focus on White Onions for Better Returns

Farmers in Saurashtra have ramped up onion sowing this year, with a focus on white onions due to favorable pricing. Although rain caused minor damage, the overall crop condition looks positive. Old onion stocks are being sold gradually, but supplies remain limited, with around 30-40 thousand sacks of old onions still available.

Export Delays and Costs Hit Onion Trade Hard

Export challenges persist due to the rising cost of container shipping and geopolitical instability in countries like Iran and Israel. Conflicts in these regions have delayed shipments, which now take 45-50 days instead of the usual 10-15 days, discouraging many exporters. Since onions are perishable, the risks of spoilage during these delays increase, further complicating trade.

Conclusion

Prices predicted to be stable until Diwali and a possible reduction in export duties. While prices may drop slightly after Diwali with increased arrivals, the overall market remains stable. Farmers should consider holding onto their stock for now, as market conditions may improve in the coming weeks, offering better opportunities.





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