Nashik: No Onion Shortage Expected As Stocks Remain Adequate, Says HPEA

Nashik: There is no immediate threat of an onion shortage in India, as adequate stocks are currently available across major producing states, according to the Horticultural Produce Exporters Association (HPEA). The association reached this conclusion after reviewing market conditions in Maharashtra, Madhya Pradesh, Gujarat, and southern India.

HPEA Vice President Vikas Singh has informed the Consumer Protection Department about the current market situation through an email.

According to the association's market assessment, sufficient quantities of stored onions are available in Maharashtra, Madhya Pradesh, and Gujarat. While markets are currently receiving a higher volume of lower-grade onions, better-quality onions continue to remain in storage and are expected to be released later in the season or when arrivals decline. The report also notes a slight dip in overall market arrivals in recent days.

On the export front, the outlook remains subdued. With onions from Pakistan and China available at lower prices, India's onion exports have declined significantly. Current export volumes are estimated to be only 25–30 per cent of last year's levels. As a result, demand and prices for Indian onions in Gulf countries, Sri Lanka, and East Asian markets are expected to remain under pressure in the coming months.

Regarding crop conditions in southern India, HPEA estimates that nearly 60 per cent of the onion crop has been planted in Karnataka's Chitradurga and Challakere regions. Although the cultivated area is lower than last year, the association believes that if rainfall remains moderate during the crop's growth and harvesting stages, onion quality is likely to improve.

The association expects fresh arrivals from Karnataka to begin increasing after August 15, followed by supplies from Dharwad, Hubballi, Belagavi, Bagalkot, and Solapur during late September and October. HPEA has recommended another review of the crop situation during the first or second week of August.
Overall, the association concluded that there is no reason for concern regarding onion availability at present, as market supplies remain stable and there is no immediate likelihood of a shortage.

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"HPEA's assessment reflects the current market reality. Since onion stocks are adequate, there is no reason to fear a shortage. We have informed the Consumer Protection Department through email and believe the Central Government should make greater efforts to boost onion exports."

— Vikas Singh, Vice President, HPEA