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Onion is one of the most widely consumed vegetables globally and holds a crucial place in Indian agriculture and trade. With high domestic demand and consistent international interest, understanding the onion supply chain and market pricing has become essential for both buyers and suppliers.

In this blog, we break down the current onion demand, supply conditions, and price fluctuations to give you a clearer picture of this essential commodity.

🔺 Current Demand of Onions in India & International Market

India ranks as the **second-largest onion producer** in the world. With its year-round demand in homes, restaurants, and food processing units, onions are always in high demand. The average household in India consumes onions daily, and with population growth, the overall demand keeps rising.

Additionally, countries like Bangladesh, Malaysia, UAE, Sri Lanka, and Nepal are key importers of Indian onions, keeping the onion export market strong.

📦 Supply Chain Challenges and Seasonal Impact

The supply of onions is largely dependent on harvesting seasons in key Indian states like Maharashtra, Gujarat, Madhya Pradesh, and Karnataka. Typically, there are three onion seasons:

• Kharif Crop (October–December)
• Late Kharif (January–March)
• Rabi Crop (April–June) – the biggest contributor to onion stock

Any disruption in weather, like unseasonal rainfall or drought, directly affects production and leads to a supply-demand mismatch, impacting prices heavily.

💰 Onion Price Trends in 2025

As of May 2025, onion prices in India have seen moderate fluctuation. Here's an overview:

• Retail prices range between ₹20–₹35/kg in major cities.
• Wholesale prices have remained in the range of ₹1,200–₹2,000 per quintal, depending on quality and location.
• Export prices have slightly increased due to lower stocks and higher freight costs.

With an increasing push from the government to stabilize prices and maintain buffer stocks, prices are expected to stay moderately stable unless disrupted by unexpected climatic conditions.

🌍 Indian Onion Export Outlook

India’s onion exports are regulated to ensure domestic availability. However, in recent years, the country has resumed exports after maintaining sufficient internal stock. As per APEDA data, India exported over **1.5 million metric tons of onions** in the previous financial year.

Key export markets include:

• Bangladesh
• UAE
• Sri Lanka
• Malaysia
• Oman

"Indian onions are globally known for their pungency, shelf life, and affordability."

📊 Future Trends & Market Opportunities

With advancements in cold storage, improved logistics, and increased global demand for Indian produce, the onion export market from India is expected to grow. Exporters are now focusing on high-quality sorting, grading, and eco-friendly packaging to meet global standards.

If you're planning to enter the onion import business or wish to source onions from a reliable supplier in India, now is a great time.