India: Adequate onion stocks likely to keep domestic supplies comfortable

• Stored onions remain sufficient across key producing states
• Weak export demand continues to weigh on market sentiment

India’s onion market is expected to remain adequately supplied in the near term, with sufficient stored stocks across major producing states helping offset the recent moderation in mandi arrivals. Current market assessments indicate that inventories in Maharashtra, Madhya Pradesh and Gujarat are adequate to meet domestic demand, easing concerns over any immediate supply shortage.

Stored inventories to support market availability

Markets are currently witnessing a higher share of lower-grade onions, while better-quality produce continues to remain in storage and is expected to be released gradually as arrivals decline later in the season. In southern India, nearly 60% of the onion crop has been planted in Karnataka’s Chitradurga and Challakere regions. Although the cultivated area is lower than last year, favorable rainfall during crop development is expected to improve bulb quality. Fresh arrivals from Karnataka are likely to pick up after 15 August, followed by supplies from Dharwad, Hubballi, Belagavi, Bagalkot and Solapur during late September and October.

Export demand remains subdued

India’s onion exports continue to face pressure from lower-priced supplies offered by Pakistan and China. Export volumes are currently estimated at only 25-30% of last year’s levels, limiting demand from key overseas markets, including Gulf countries, Sri Lanka and East Asia.

Market Outlook

Domestic onion availability is expected to remain comfortable in the coming weeks, supported by adequate stored stocks and the gradual arrival of the southern crop. However, subdued export demand and increased competition in international markets are likely to keep overall market sentiment under pressure in the near term.