Delayed new crop could push Indian onion prices to a yearly high

Onion prices in India could rise sharply in late September and October due to delays in the arrival of the new crop from Maharashtra. Large-scale arrivals of red onions are expected to begin 1–1.5 months later than usual, with full-scale supplies reaching the market only after November.

Stocks of the old Garwa pink crop are declining rapidly. Around 30–40% of last season’s crop remains available, of which only 10–15% is suitable for export. Onion quality is also deteriorating as the remaining stocks approach the end of their storage life.

Prices in Maharashtra have already risen by around 25–30% over the past month, from $31–42 to $42–52 per quintal. Market participants estimate that prices could reach $84–94 per quintal, or $840–940/t, between September 25 and the end of October if demand continues to outpace supply.

Export demand remains stable from the Middle East and Asian markets, including Vietnam, Malaysia and Singapore. Meanwhile, the new crop from Andhra Pradesh and Karnataka is mainly being directed to the domestic market and is unlikely to fully offset the shortage of export-quality onions.

High logistics costs and limited supply from Pakistan are adding further pressure to the market. If the shortage in India deepens, Egypt and Turkey could emerge as alternative suppliers.

Tags: prices, India, onion