India: Wholesale onion prices in Nashik ease as Karnataka, Andhra supplies rise

• Lasalgaon onion prices fall to INR 46/kg from INR 55/kg a month ago
• Fresh arrivals ease supply pressure, while retail prices remain elevated 

Wholesale onion prices at Lasalgaon, Nashik, have declined after staying elevated for nearly a month, as increased availability from Karnataka and Andhra Pradesh has eased supply pressure. Good quality onions are now trading at around INR 46/kg, down from INR 55/kg in early September, while inferior quality onions have fallen to INR 35/kg from INR 45/kg.

Karnataka, Andhra arrivals weigh on Nashik prices

The recent decline in Lasalgaon prices has been largely attributed to increased availability of kharif onions from Karnataka and Andhra Pradesh. Harvesting in the two states began in late August, bringing additional supplies into the market. Wholesale onion prices in Karnataka currently range between INR 35 and INR 51/kg, depending on quality.

Daily arrivals at Lasalgaon are currently around 6,000 quintals. Traders expect arrivals could increase if farmers holding stocks release their produce amid concerns over further price declines, potentially adding pressure on wholesale rates.

Export demand shifts towards southern-origin onion

Export demand is currently stronger for onions from Karnataka and Andhra Pradesh, as overseas buyers prefer the newly harvested crop. The availability of fresh produce from these states has therefore reduced the relative competitiveness of Nashik onions in export markets.

Imports from Egypt have also added to overall market availability, contributing to the easing of wholesale prices at Lasalgaon.

Outlook

Lasalgaon onion prices are likely to remain sensitive to arrivals from Karnataka and Andhra Pradesh, farmer stock releases and export demand. While increased southern supplies and Egyptian imports could cap wholesale prices, firm hotel demand and the preference for Nashik onions in domestic channels may provide downside support. Retail prices are likely to remain elevated if wastage and distribution costs continue to widen the wholesale-retail spread.