Increase in White Onion Production

The production of white onions has seen a significant boost this season, leading to expectations of increased kibble (dehydrated onion) production. Industry sources predict a 20% rise in dehydrated onion output, surpassing one lakh tonnes this season. The improved crop yield is mainly attributed to favorable weather conditions and better farming practices, which have helped onion growers achieve higher productivity.

Price Fluctuations and Market Trends

Currently, the price of white onion is around USD 0,15 per kg, but prices are expected to fall further as arrivals increase. Onion kibble prices, currently at USD 1,56 to 1,62 per kg, may drop to USD 1,20 per kg by April-June. The price drop is expected as dehydration plants become fully operational and supply outpaces demand.

Demand and Export Prospects

With increasing onion production, India is set to strengthen its presence in the global dehydrated onion market. Exporters are anticipating steady demand from international markets, particularly in Europe, the Middle East, and North America. Indian onion kibble is gaining traction due to its competitive pricing and consistent quality, making it an attractive choice for food processing industries abroad.

Additionally, many food processing companies rely on dehydrated onion as a key ingredient in packaged and processed foods. The growing demand for ready-to-eat meals and convenience foods is expected to drive further growth in the dehydrated onion segment.

Challenges in the Onion Market

Despite increased production, farmers are concerned about declining prices due to oversupply. Many growers are calling for better storage facilities and government intervention to prevent extreme price fluctuations. If prices fall too low, some farmers may face financial strain, discouraging them from planting onions in the next season.

Additionally, transportation and logistics costs remain a challenge for onion exports. With fluctuating fuel prices and container shortages, exporters must navigate logistical difficulties to ensure smooth global distribution.

Conclusion: Strong Supply May Lower Prices

With an abundant crop, dehydration plants are expected to be fully operational by March, and onion prices could soften further. Processors and traders must prepare for fluctuating prices in the coming months. However, strong export demand could help balance the market, ensuring steady profitability for farmers and suppliers alike. Strategic planning and efficient supply chain management will be key to navigating the onion market in the upcoming season.

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