Farmgate price of good quality onion would revolve around Rs 23-25 a kg in September-October and fluctuation in prices may depend on the onset of monsoon, according to Tamil Nadu Agricultural University (TNAU).
TNAU, which analysed prices in the last 13 years in the Dindigul market, advised farmers to take suitable marketing decisions as price may vary based on the size, color and storability.
Storability of Mysore onion was poor as it can be kept only up to two to three days days after arrival, which led to clear of existing stocks even at a lower price of Rs seven to Rs 10 per kg, it said.
For local onion, the price is Rs 13-16 per kg due to its storability and regular arrivals from major onion belts.
For seed onion, the price is Rs 20 per kg and for onion more than 18 mm in size and high storability can be used for export fetches Rs 25-30 per kg in major markets of Tamil Nadu. Demand is expected to see an increased trend till October.
Both demand for seed onion and commencement of festival season may push the price of shallots, TNAU said.
But increased acreage under shallots in Tamil Nadu and continuously growing them without any distinct season make the demand-supply gap narrower.
Small onion is one of the most important vegetable crops grown in South India and unlike the previous years, shallots are raised continuously in all seasons both using seedlings and seed bulb. The major small onion growing states are Tamil Nadu, Karnataka and Andhra Pradesh.