According to trade sources, export demand has remained robust this season, with overseas shipments accounting for an estimated 5-10% of total production
The Tamil Nadu Agricultural University’s (TNAU) Domestic and Export Market Intelligence Cell (DEMIC) has forecast farm-gate prices of ₹30-35 a kg for good-quality small onions during the upcoming harvest season and advised farmers to plan their sowing accordingly.The forecast is based on an analysis of 15 years of price data from the Dindigul market along with a market survey conducted by DEMIC at the Centre for Agricultural and Rural Development Studies (CARDS), TNAU, said a press release from the farm varsity.India is the world’s leading producer of small onions, or shallots, with cultivation concentrated in the southern States of Tamil Nadu, Karnataka and Andhra Pradesh. In Tamil Nadu, small onions account for nearly 80 per cent of the State’s total onion production.Key export hubDuring 2024-25, the crop was cultivated over 0.44 lakh hectares, producing 5.28 lakh tonnes with an average productivity of 12 tonnes per hectare. Major producing districts include Dindigul, Tiruppur, Perambalur, Tiruchirappalli, Namakkal, Theni and Madurai.While domestic demand is largely met through production within Tamil Nadu and supplies from Karnataka and Andhra Pradesh, the State also serves as a key export hub for small onions, catering to markets such as Sri Lanka, Bangladesh, Malaysia and Nepal.According to trade sources, export demand has remained robust this season, with overseas shipments accounting for an estimated 5-10 per cent of total small onion production.Fresh arrivals from Perambalur, Dharapuram, Palladam, Udumalpet and parts of Karnataka are currently flooding the major wholesale markets in Tiruchirappalli and Dindigul.Based on its price outlook, TNAU has advised farmers to take the projected harvest prices into account while making sowing decisions for the coming season.Published on July 20, 2026
