India: Lasalgaon onion prices extend gains amid shrinking mandi arrivals

•  Lasalgaon onion prices extend gains amid shrinking mandi arrivals
• Improved export demand lends further support to market sentiment

Average wholesale onion prices at Lasalgaon Agricultural Produce Market Committee (APMC) market rose to INR 2,000/quintal on Tuesday, the highest level since Dec’25 and nearly 15% higher than the previous day’s average of INR 1,740/quintal. During the day’s auctions, prices ranged from INR 800/quintal to INR 2,628/quintal, reflecting stronger competition for superior-quality lots.

Reduced market inflows tighten supply

The recent rise in prices has coincided with a moderation in arrivals at the country’s largest onion trading hub. Daily volumes reaching the market have eased to around 12,000 quintals from nearly 18,000 quintals seen earlier, resulting in lower immediate availability.

Most of the onions currently entering the market are summer stocks harvested during March and April. Given their storage potential of six to seven months, growers have been adopting a phased selling approach, releasing quantities based on cash requirements while retaining inventories in anticipation of better price realization.

Export enquiries add support to prices

Besides tighter supplies, improved buying interest from overseas markets has added strength to the market over the past two weeks. Firm open-market prices have widened the gap with government procurement rates, limiting participation in buffer stock purchases.

With NAFED and NCCF procuring onions at INR 1,730/quintal, growers are finding better realizations through APMCs, where Grade A and Grade B onions are trading in the INR 1,800-2,000/quintal range.

 Outlook

With fresh kharif arrivals still several months away, stored summer onions are expected to continue meeting domestic demand. The combination of moderated arrivals and improving export interest is likely to keep market sentiment firm in the near term. Going forward, the pace at which farmers liquidate stocks and the continuity of export demand will be key factors influencing price movement.