Dehydrated Onion Price Trend and Forecast

Dehydrated Onion Regional Price Overview

Get the latest insights on price movement and trend analysis of Dehydrated Onion in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Dehydrated Onion Price Trend for the Q3 of 2024

The prices of dehydrated onions in the Indian market showed a mixed trend during the third quarter of 2024. While the prices of dehydrated onions generally follow the trend of fresh onions, they are typically higher due to the additional steps of dehydration and preservation in the production process. Prices remained elevated in July, continuing the trend from the previous quarter.
 

Dehydrated Onion Price Chart

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In contrast to lower prices in Afghanistan and Pakistan, which supported imports and impacted local markets in Punjab and Delhi, consumers still favored the domestic variety. Additionally, production of both rabi and kharif crops declined compared to last year, affecting supply. To stabilize prices, the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) began actively procuring onions and boosting cultivation. These efforts helped bring prices down to some extent. The government also sold buffer stock in wholesale markets to increase supply, providing relief to consumers.

As the quarter drew to a close, prices surged again due to increased demand ahead of the slow span of Navaratri festival, during which many people abstain from onions and garlic, leading to a spike in demand in the preceding weeks. Additionally, onion traders held onto stocks, anticipating further price increases. Overall, prices remained elevated throughout the quarter. Although government measures helped reduce prices temporarily, factors such as hoarding by traders and adverse weather conditions continued to affect supply.

Analyst Insight

According to Procurement Resource, the price of dehydrated onion is expected to show an inclining trajectory in the near future due to reduced supply of onions as the Rabi harvest inventories are on the decline.
 

Dehydrated Onion Price Trend for the Q2 of 2024

Dehydrated Onion prices observed a mixed market trend in the Indian markets during the given three-month span of Q2'24. The quarter started on a humble note at the beginning of April. Since the prices of fresh onions in the local markets were stable, the dehydrated onion market also exhibited stability since the prices for both fresh onions and dehydrated onions show great resemblance. However, great demand for dehydrated onions propelled the prices up in the later days. International orders kept coming in and pushed up the dehydrated onion prices.

Dehydrated onions from Gujarat have seen a significant surge in demand, leading to a substantial increase in exports in the financial year 2023-24, the highest in four years. This surge is attributed to crop losses in competitor countries like China and Egypt and India's ban on fresh onion exports. Mahuva town in Bhavnagar, with 120 dehydration plants, is the largest onion processing center, producing powder, flakes, granules, and dried cuts used extensively in spices and cooking.

Key importers include the US, Canada, Mexico, the UK, Germany, the Netherlands, France, Spain, and other European and West Asian countries. Export prices have risen. The government of India is also procuring fresh onion at a record rate from farmers to create a buffer of 500000 tonnes so that the seasonal upswing in prices like the past few years can be avoided. This is further pushing the dehydrated onion prices up.

Analyst Insight

According to Procurement Resource, given the current domestic and offshore demand scenarios, the Dehydrated Onion prices are expected to incline in the coming months.
 

Dehydrated Onion Price Trend for the Q1 of 2024

Dehydrated onions or dried onions are directly sourced from onions; therefore, their prices align very closely with each other. The dehydrated onions market follows the fluctuations in feedstock onion markets. A similar trend was observed in the first quarter of the year 2024 as well. Dehydrated onion prices showcased a slight depreciation in January as the onion prices remained in check in the Indian markets.

The primary factor behind the consolidation of onion prices was the extension of export bans by the Government of India in December’23. In the wake of an upsurge in domestic onion prices last year, the government imposed a ban on onion exports. However, since the prices continued to maintain certain levels, the authorities extended the ban till March’24. The general election season in India can also be a reason the prices have maintained a subdued trajectory in recent times for common food items like dehydrated onion.

Analyst Insight

According to Procurement Resource, the Dehydrated Onion prices are expected to march upwards since the export bans are likely to be lifted in India by May’24.

Procurement Resource provides latest prices of Dehydrated Onion. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.