Onion Prices Set to Drop Slightly as Fresh Crops Hit the Market

For the past 20 days, onion prices in Rajkot have stayed stable. Sellers are offering medium-quality onions for USD 0,21-0,24 per kg, while good-quality onions are selling for USD 0,24-0,30 per kg. Farmers and traders credit this stability to balanced supply and demand, with markets in Rajkot receiving 10.000-15.000 bags daily.

Regional Distribution With No Pest Reports

Apart from meeting local demand, onions from Gujarat are distributed to states like Punjab, Haryana, Rajasthan, and Chhattisgarh. The red onion crop, which was planted around Diwali, has started arriving in Saurashtra, and the yellow leaf onion crop is expected to hit markets after February 25. Gujarat has seen excellent planting of yellow onions this year, with no reports of pest issues. The expected yield for yellow onions is projected at 250-350 maunds per hectare, indicating favorable growing conditions.

Traders predict that onion prices will fall by USD 0,03 per kg as the new yellow and red crops start arriving. Although a sudden rise in demand could prevent a significant drop, most market experts do not foresee prices increasing in the near future. The government’s 20% export duty has also reduced large-scale exports to countries like Bangladesh, adding pressure to the domestic market.

Nationwide Onion Supply Breakdown

Raw onions from Nashik have started entering the market and now account for 55-60% of India’s total onion demand. Gujarat supplies the remaining 30-40%, with its onions dominating in some states. However, stockists are hesitant to purchase onions unless prices drop to USD 0,15-0,18 per kg, which may limit speculative buying for now.

Conclusion

Farmers and traders in Gujarat are benefiting from favorable winter weather, which has supported a strong onion harvest. As yellow onions reach the market, consumers can expect prices to drop slightly. Traders may want to wait for prices to stabilize before making large purchases, while buyers can look forward to lower prices. However, fluctuations in demand could still influence pricing, so staying informed about market trends is a smart move.

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