India: Delayed red onion season may keep prices elevated as export demand stays firm

  • A 30-45 day delay in red onion arrivals is likely to tighten supplies and keep domestic prices firm in the coming months
  • Steady Southeast Asian demand supports India’s onion exports despite intense competition from other major exporting countries

India’s onion market is expected to remain firm over the coming months as the arrival of the next red onion crop is likely to be delayed by around 30-45 days. Maharashtra, Karnataka and Rajasthan are expected to play a crucial role in determining when fresh supplies enter the market, making weather conditions a key factor influencing availability and prices.

Delayed crop may tighten supply

Procurement prices are currently ranging between USD 0.21-0.29/kg, depending on bulb size and quality. If fresh crop arrivals are delayed beyond current expectations, prices could rise further to around USD 0.31-0.41/kg or higher due to tighter market availability.

Southeast Asia supports exports

India’s onion exports continue to receive steady demand from Malaysia, Vietnam, Singapore, Thailand and Sri Lanka, while buying interest from Gulf countries remains comparatively weak. Exporters also continue to face strong competition from China, Turkey, Sudan, Yemen, Egypt and Pakistan across several overseas markets.

Despite competitive pressures, India’s staggered onion production across Maharashtra, Madhya Pradesh, Karnataka, Rajasthan and Gujarat allows exporters to supply onions across multiple crop cycles, providing an advantage in maintaining year-round market presence.

Outlook

The expected delay in the red onion season is likely to keep domestic prices firm until fresh arrivals improve. While export opportunities remain supported by steady demand from Southeast Asia and India’s diversified production base, sustained export growth will depend on consistent quality, food safety compliance, traceability and reliable supply programs alongside competitive pricing.