TNAU Forecasts Small Onion Prices at ₹60-65 per Kg During Harvest Season

Farm-gate prices of good-quality small onions, commonly known as shallots, in Tamil Nadu are expected to range between ₹60 and ₹65 per kg during the upcoming harvest season. This projection comes from an interim price forecast issued by the Tamil Nadu Agricultural University (TNAU).

The price forecast was prepared by the Domestic and Export Market Intelligence Cell (DEMIC), which operates under the Department of Agricultural Economics at TNAU’s Centre for Agricultural and Rural Development Studies (CARDS). The team arrived at these figures after analysing small onion price data from the Dindigul market over the past 15 years, alongside conducting a comprehensive market survey.

Following the release of these findings, the university has advised agricultural producers in the State to make informed marketing decisions aimed at securing better returns for their produce.

Small onions represent a commercially vital crop in Tamil Nadu, driven by steady domestic consumption in local cuisine and seasonal demand surges ahead of major festivals. While local production typically covers the State's primary requirements, market supplies are also supplemented by arrivals from neighbouring Karnataka and Andhra Pradesh.

Tamil Nadu ranks among the prominent small onion-producing states in southern India. Key production hubs across the State include Dindigul, Tiruppur, Perambalur, Tiruchi, Namakkal, Theni, and Madurai.

According to the Ministry of Agriculture and Farmers Welfare’s Second Advance Estimates for 2025-26, Tamil Nadu recorded a total onion production of 4.57 lakh tonnes cultivated across 0.45 lakh hectares. Nationally, India cultivated onions across 19.68 lakh hectares, yielding a total production of 307.67 lakh tonnes during the same period.

Market dynamics in the State are currently experiencing shifts. Regular arrivals of small onions from regions such as Udumalpet, Dharapuram, Perambalur, and Palladam into major markets in Tiruchi and Dindigul have seen a decline. Unfavourable weather conditions have impacted the availability of fresh produce, thereby influencing current market arrivals.

At present, major markets are receiving supplies from alternative production pockets including Madhampatti, Alandurai, Thondamuthur, Theni, and Chinnamanur.

In addition to domestic demand, Tamil Nadu functions as an export hub for small onions, catering to international markets in Sri Lanka, Malaysia, and Singapore. The combination of local consumption and export demand establishes the crop as a crucial source of income for farmers operating within the State.

"Price forecasting models play a critical role in agricultural economies by helping producers navigate market volatility and supply chain shifts. With institutional forecasts like the one provided by TNAU, farmers and regional agribusinesses gain essential visibility into pricing trends. This data-driven insight allows producers to optimize their supply timing, manage local and export commitments more effectively, and ultimately secure better financial returns during the harvest season." — Dr. Shishir Gupta, Founder & CEO, StartupLanes