The Indian onion market is currently grappling with an oversupply situation, resulting in subdued prices and minimal volatility. Farmers in Gujarat have harvested a bumper crop, while steady arrivals from Nashik — traditionally a bellwether region for onion quality — have further flooded wholesale markets. In Rajkot alone, the daily arrival of 8,000 to 10,000 sacks underscores the supply glut. Despite this, demand has remained weak, with both trade insiders and market data suggesting that prices will likely stay stable with only modest fluctuations in the coming months. The lack of any export avenue, particularly to Bangladesh (due to its strong domestic harvest), intensifies this trend. Global production is also up by an estimated 10%, raising the prospect of potential imports into India and further suppressing price rallies. The market’s reluctance is compounded by large inventories held by both farmers and traders and the absence of near-term demand catalysts. Looking ahead, looming low prices may even prompt farmers to shift acreage away from onions during the coming monsoon sowing season. All signs point to continued pressure on prices, with both domestic and global factors working together to cap any upside for the foreseeable future.
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Onion powder
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FOB 2.65 €/kg
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📈 Latest Onion Prices
| Product | Type | Origin | Location | Delivery Terms | Latest Price (USD/kg) | Previous Price (USD/kg) | Update Date | Market Sentiment |
|---|---|---|---|---|---|---|---|---|
| Onion powder | grade – B | IN | New Delhi | FOB | 1.27 | 1.27 | 2025-05-30 | Stable |
| Onion powder | white | IN | New Delhi | FOB | 1.57 | 1.57 | 2025-05-30 | Stable |
| Onion | powder (organic) | IN | New Delhi | FOB | 2.65 | 2.65 | 2025-05-30 | Stable |
| Onion | fresh | EG | Kairo | FOB | 0.77 | 0.77 | 2025-05-30 | Stable |
| Onion | flakes (organic) | IN | New Delhi | FOB | 5.2 | 5.2 | 2025-05-30 | Stable |
| Onions fried | crispy fried | PL | Lodz | FCA | 3.42 | 3.42 | 2025-05-26 | Stable |
🌍 Supply & Demand Dynamics
- Large supply influx from Gujarat and continuing arrivals from Nashik are sustaining wholesale volumes at high levels, especially in Rajkot, Saurashtra, and Mahuva regions.
- Global production jumped nearly 10% this year, fueling a global surplus and capping international price prospects.
- Minimal export opportunities — including no shipments to Bangladesh — leave domestic stocks robust and demand weak.
- Premium Nashik onions maintain a price premium but face limited domestic demand; lower-quality onions dominate regional trading.
📊 Market Fundamentals
- Rajkot Wholesale Market:
- Lower-quality: $0.72–$1.44 per 20 kg
- Good-quality: $1.80–$3.00 per 20 kg
- Premium Nashik: $2.88–$4.44 per 20 kg
- Acreage: Farmers and traders maintain inventories, thanks to stable pricing, but ongoing sluggish demand and no upward price drivers.
- No speculative activity is observed; speculative positioning remains sidelined amid weak sentiment.
🌦️ Weather Outlook
- Gujarat and Nashik: Current conditions are favorable with adequate rainfall predictions for the early monsoon. However, sustained low prices may discourage sowing, especially if alternative crops gain appeal.
- Global perspective: Most major producers enjoy ideal weather, furthering the supply surplus globally.
📊 Global Production & Stocks
| Country | 2024 Production YoY Change | Stock Situation |
|---|---|---|
| India | +8% | Plentiful, rising inventories |
| Bangladesh | +12% | High, no imports |
| China | +10% | Strong, stable exports |
| Egypt | +7% | Stable, strong exports |
📆 Market Outlook & Trading Recommendations
- Expect prices to remain range-bound ($0.12–$0.24 per 20 kg fluctuation expected); little upside unless a weather shock or sudden export opportunity arises.
- Inventories are likely to continue rising in the short term due to persistent oversupply and tepid demand.
- Traders should avoid speculative long positions until signs of sustained demand improvement appear.
- Farmers may reassess sowing plans ahead of the monsoon; consider crop diversification due to current low returns for onions.
- Monitor for any abrupt trade policy changes or adverse monsoon developments which could disrupt the supply-demand balance.
⏩ 3-Day Regional Price Forecast (Wholesale, Rajkot)
| Date | Lower-Quality (USD/20 kg) | Good-Quality (USD/20 kg) | Premium Nashik (USD/20 kg) |
|---|---|---|---|
| Day 1 | 0.72–1.44 | 1.80–3.00 | 2.88–4.44 |
| Day 2 | 0.72–1.44 | 1.80–3.00 | 2.88–4.44 |
| Day 3 | 0.72–1.44 | 1.80–3.00 | 2.88–4.44 |
Prices expected to remain steady, barring any unexpected weather or demand shifts.