India’s onion market is entering a period of transition, with older-crop supplies from Maharashtra still arriving while Karnataka’s new crop begins to reach the market. Exporters are adjusting their sourcing to meet buyers’ requirements for different onion sizes, skin quality, colour, and shelf life. Meanwhile, the ageing of stored onions is making sprouting a growing concern during export selection.

“Although Nashik remains a key sourcing hub, we’re seeing more enquiries for Pune onions and continued demand for Karnataka’s rose onions. Sprouting in the older crop has also become a bigger concern when selecting onions for export,” says Shakir Maza of Al Noor Exim.

© Al Noor EximPune old crop

The choice of sourcing region depends on what each buyer needs. Pune onions are attracting enquiries for their bulb size, skin quality and colour. Karnataka’s rose onions have smaller bulbs and command higher prices, but offer a longer shelf life. Nashik supplies remain important, and exporters draw on different markets to meet requirements across multiple shipments.

Arrivals and prices have also taken an unexpected turn compared with a year earlier. According to Maza, Nashik arrivals have remained high for longer than expected, with volumes rising again in recent weeks. As prices began to ease, farmers brought more produce to market rather than risk selling later at lower rates.

“Prices had reached a 52-week high last week before beginning to fall as Karnataka’s new crop entered the market. But what will happen in the coming weeks remains uncertain.”

© Al Noor EximKarnataka new crop

Maza puts the price of onions last year at around Rs 25 per kg (US$0.26), compared with more than Rs 50 per kg (US$0.52) after sorting, grading and packing now. Freight costs to the UAE have also risen sharply since the war-related disruption, from around US$900 per container to around US$8000-9500, while transit times have increased from three to ten days.

Quality is becoming another challenge, particularly in the older crop of onions. Size and colour remain key buyer requirements, but sprouting has come up more frequently in discussions over the past one to two weeks. Maza says the share of older onions that remain free of sprouts has fallen considerably as the crop ages.

“Skin separation and black fungal marks, known locally as kajal, are also appearing. Some affected onions can be removed during sorting, although the fungal marks are not always visible externally. For buyers, sprouting remains the main concern, followed by bulb size for now.”

© Al Noor EximNashik old crop

Export volumes are broadly comparable with last year, Maza adds, but fewer exporters are handling the business. “Higher procurement and shipping costs have made it harder for smaller exporters to compete, while those able to manage larger shipments are taking on more orders.”

For those still shipping, meeting an order means finding the right combination of size, colour, skin condition and keeping quality across available supplies. “We expect exports from Nashik to continue, with Pune and Karnataka also supplying, contributing according to buyers’ requirements,” Maza concludes.

For more information:
Shakir Maza
Al Noor Exim
Tel: +91 98 98 116 829
Email: [email protected]
www.alnoorexim.com