The Tamil Nadu Agricultural University forecasts small onion farm-gate prices between ₹30 and ₹35 per kg for the upcoming harvest. Strong export demand from countries including Sri Lanka and Bangladesh is expected to support these price levels. Farmers are encouraged to use these projections to plan their sowing cycles effectively.
Small onion farmers in India are looking at a projected price range of ₹30 to ₹35 per kilogram for the upcoming harvest season, according to the latest forecast from the Tamil Nadu Agricultural University. This guidance, provided by the university’s Domestic and Export Market Intelligence Cell, is based on a detailed study of 15 years of price trends at the Dindigul market. By offering these estimates, the university aims to help growers make informed choices about their planting schedules and quantity, which can influence future supply and income stability.
India's Position in Small Onion Production
India remains the largest producer of small onions, also known as shallots, globally. The crop is a vital part of the agricultural economy in southern India, particularly in states like Tamil Nadu, Karnataka, and Andhra Pradesh. In Tamil Nadu alone, small onions account for roughly 80% of the total onion production in the state. For the 2024-25 season, the state reported production of approximately 5.28 lakh tonnes from 0.44 lakh hectares of land. Key growing regions in the state include Dindigul, Tiruppur, Perambalur, Tiruchirappalli, Namakkal, Theni, and Madurai, which serve as primary hubs for both local consumption and interstate trade.
Factors Influencing Price Trends
While domestic consumption remains the primary driver of demand, the export market plays an increasingly important role in price support. Small onions grown in this region are exported to neighboring countries including Sri Lanka, Bangladesh, Malaysia, and Nepal. Currently, about 5% to 10% of total production is directed toward these international markets, helping to absorb surplus supply and maintain price floors during periods of high harvest volume.
Recent supply updates show that fresh produce from Perambalur, Dharapuram, Palladam, and Udumalpet, along with shipments from neighboring Karnataka, are now reaching major wholesale markets such as Dindigul and Tiruchirappalli. The price stability of this commodity often depends on a delicate balance between these local arrivals and the sustained pace of export shipments. Moving forward, farmers and market participants should monitor rainfall patterns in these key districts and any shifts in export policies or demand from the primary importing nations, as these will be the key factors determining if actual market prices stay within the projected range.