India: Dual supply pressures pull Nashik onion prices down sharply

• Lasalgaon APMC modal onion prices fell 15.7% to INR 3,751/quintal between October 1 and 12
• Rising kharif arrivals from southern India and Egyptian onion imports are adding to pressure on Maharashtra’s stored summer crop

Onion prices in Nashik are facing sustained pressure as fresh kharif supplies from Karnataka and Andhra Pradesh increase alongside imported Egyptian onions entering domestic markets. According to Agmarknet’s daily price and arrival report, Lasalgaon APMC modal prices declined during the first 12 days of October, reflecting weaker price realisations for stored summer onions.

Lasalgaon onion prices decline amid supply pressure

According to Agmarknet data, the modal price of onions at Lasalgaon APMC fell to INR 3,751/quintal on October 12 from INR 4,451/quintal on October 1, a decline of 15.7%. The maximum price decreased to INR 4,200/quintal from INR 5,201/quintal over the same period. Market arrivals also declined to 294 tonnes on October 12 from 721 tonnes on October 1, although daily arrivals fluctuated during the intervening period.

Fresh kharif arrivals and imports increase competition

Harvesting of kharif onions in Karnataka and Andhra Pradesh began towards the end of August, with fresh supplies gradually increasing in southern markets. According to market participants, two containers of Egyptian onions arrived at Vashi APMC, with imported onions selling at INR 38–40/kg compared with INR 40–50/kg for Indian onions. Traders reported demand from hotels and commercial kitchens, while household buyers largely preferred domestic onions. The report adds to concerns that competing supplies could weaken demand for Maharashtra’s stored summer crop.

Stored onion quality adds to market weakness

Onions stored by farmers during February and March have faced quality deterioration due to changing weather conditions. Higher proportions of sprouted, damaged and lower-grade produce are affecting marketable quality and price realisations. This is adding to pressure on stored summer onions as buyers gain access to fresh kharif supplies and lower-priced imports.

Outlook

Lasalgaon onion prices may remain under pressure if fresh kharif arrivals increase and demand for Maharashtra’s stored onions remains weak. Further price movements will depend on southern crop arrivals, the scale of Egyptian imports, export demand and the quality of stored stocks available for sale.