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Manthan1709

Dec 2, 2024

Onion Prices Expected to Stay Stable In India

Onion Prices Expected to Stay Stable In India

Onion Prices Hold Steady Despite Increasing Supply

In Rajkot (Gujara), onion prices have maintained their stability even as market arrivals have surged. Currently, red onions are priced between USD 0,33 and 0,48 per kg, supported by consistent domestic demand and steady export shipments. Daily arrivals in the region range from 500,000 to 700,000 kg, reflecting a healthy balance between supply and demand.

Strong Exports Keep Market Firm

The availability of a healthy onion crop and sustained interest from export markets have helped stabilize prices. Recent buyers from Bangladesh and Sri Lanka have shown particular interest, bolstering trade activity.

Market expert Praful Rangani predicts only minor price fluctuations, with potential variations of around USD 0,024 to 0,036 per kg over the next one to two months. This outlook reflects a well-supplied market that continues to benefit from solid international demand.

Regional Supply Supports National Demand

Onions from Saurashtra are fulfilling requirements across 10 to 12 Indian states, including Rajasthan, Punjab, and Haryana. Traders from Uttar Pradesh are actively purchasing at prices between USD 0,72 and 0,84 per kg, indicating strong demand in their regions. This steady movement of produce ensures a seamless supply chain from farms to markets, minimizing disruptions.

Improved White Onion Crop Set to Enter the Market

In about 20 days, markets are expected to see the arrival of a new white onion crop. This improved harvest is anticipated to further support the market's stability. Meanwhile, sowing for the winter onion season is progressing smoothly, with initial reports suggesting favorable conditions for a robust harvest.

According to Rangani, while the market remains stable for now, minor fluctuations could arise over the next two months depending on export activity and domestic sales trends. However, the current market structure appears to be strong, with little likelihood of dramatic price shifts in the near future.

Conclusion: Optimistic Outlook for Onion Market Stability

The onion market continues to perform well, with prices holding steady due to a mix of strong demand and consistent supply. As export activity remains firm and the winter crop develops positively, the outlook for the coming months is promising. Minor price variations are expected in the Market. Yet the market's fundamentals suggest stability will prevail in the short term.

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