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Onion in India: Where It Grows, Where It Is Traded, Who Buys and Sells It

India is the world's second-largest onion grower, and onion is the one vegetable every Indian kitchen buys every week. This page follows the onion from the field in Nashik to the mandi at Lasalgaon, the dehydration plants of Mahuva and the export ships at JNPT and Mundra.

AgricultureIndustry.in › Vegetables › Onion
Top stateMaharashtra, led by Nashik district
Biggest mandiLasalgaon APMC, Nashik, known as Asia's largest onion market
Main cropRabi onion, about two-thirds of the harvest, stores 5–7 months
Processing hubMahuva, Bhavnagar district, Gujarat, for dehydrated onion
GI-tag onionsLasalgaon Onion, Bangalore Rose Onion, Alibag White Onion
Govt buyerNAFED and NCCF, for the price-stabilisation buffer stock

Where Onion Is Grown in India

Onion is grown in almost every state, but a handful of regions supply most of the country. Maharashtra is the clear leader. The black cotton soils of Nashik, Ahmednagar, Pune, Solapur and Dhule districts, together with a dry winter and good irrigation from canals and wells, suit the crop very well. Nashik district alone is called the onion capital of India, and the bulk of India's fresh onion exports start from this belt.

Karnataka is the second big source. Chitradurga, Vijayapura, Bagalkot and Dharwad grow large kharif crops, and the area around Bengaluru grows the small, sharp Bangalore Rose onion that is shipped mainly to Southeast Asia. Madhya Pradesh, especially the Malwa plateau around Indore, Shajapur, Dewas and Ujjain, has grown into a major rabi onion region. Gujarat grows onion in Bhavnagar, Amreli and Rajkot districts, and its white onion feeds the dehydration industry at Mahuva. Other important states are Rajasthan (Alwar, Jodhpur, Sikar), Bihar (Nalanda, Patna), Andhra Pradesh (Kurnool, and the Krishnapuram onion of Cuddapah grown for export), Telangana, Uttar Pradesh, Haryana and West Bengal.

StateMain districts / beltsWhat it is known for
MaharashtraNashik, Ahmednagar, Pune, Solapur, Dhule, Raigad (Alibag)Largest producer; red rabi onion for storage and export; Lasalgaon GI onion; Alibag white onion
KarnatakaChitradurga, Vijayapura, Bagalkot, Dharwad, Bengaluru RuralEarly kharif onion; Bangalore Rose onion (GI) for export
Madhya PradeshIndore, Shajapur, Dewas, Ujjain, KhandwaLarge rabi crop; Indore is a major trading point
GujaratBhavnagar (Mahuva), Amreli, Rajkot, JunagadhWhite onion for dehydration; red onion for domestic trade
RajasthanAlwar, Jodhpur, Sikar, JhunjhunuKharif and rabi onion for North Indian markets
BiharNalanda, Patna, VaishaliRabi onion for East India
Andhra PradeshKurnool, Cuddapah (Krishnapuram onion)Kharif onion; small rose-type onion for export

How Onion Is Grown

Onion is a short crop of about four to five months. Farmers first raise seedlings in a nursery bed for six to eight weeks and then transplant them into the field. The crop needs light, well-drained soil, cool weather during growth and dry, warm weather at bulb maturity. Too much rain at harvest makes the bulbs rot, which is why the kharif crop is risky and its price often jumps.

Most farmers grow red onion. The popular varieties come from Indian research bodies: Agrifound Dark Red and Agrifound Light Red from NHRDF, and the Bhima series (Bhima Super, Bhima Red, Bhima Shakti, Bhima Kiran) from ICAR's Directorate of Onion and Garlic Research at Rajgurunagar near Pune. White varieties are grown for dehydration and some export markets.

After harvest, the bulbs are cured in the field for a few days so the neck dries and the skin hardens. Rabi onion is then stored in a kanda chawl, the traditional ventilated onion shed of Maharashtra with a raised floor and open sides, where it can keep for five to seven months. This stored rabi onion is what keeps Indian kitchens supplied from June to October, until the next kharif crop arrives.

Season Calendar: When Onion Reaches the Mandis

Kharif onion

Sown June–July with the monsoon, arrives October to December. Fresh and juicy but does not store well, so it is sold quickly.

Late kharif onion

Planted September–October, arrives January to March. It fills the gap between the kharif and rabi crops.

Rabi onion

Planted December–January, harvested March to May. This is the main crop, about two-thirds of India's onion. It stores well and is sold through to October.

Prices usually rise between August and November, when stored stock runs low and the new kharif crop is not yet in. Heavy or late monsoon rain in Maharashtra and Karnataka is the most common reason for onion price spikes in India.

Big Onion Mandis

Onion price discovery in India happens in the APMC mandis, by open auction of tractor-loads brought in by farmers. Lasalgaon's daily price is followed by traders across the country, and by the government, as the benchmark onion price of India.

Fresh Onion Exporters and Traders

India exports fresh onion mainly to Bangladesh, Malaysia, the UAE, Sri Lanka, Nepal and other Gulf and Southeast Asian countries. Exporters buy at Lasalgaon, Pimpalgaon and the Nashik sub-markets, grade the onion by size (commonly 45 mm and above for export), pack it in mesh or jute bags and ship by road to Bangladesh and Nepal or by container from JNPT and Mundra. Export rules for onion change often, with minimum export prices, export duty or temporary bans, so traders check the current DGFT position before every deal.

Dehydrated Onion: The Mahuva Cluster

Not all onion is sold fresh. A large share of white onion goes into dehydration, where it is sliced, dried and turned into flakes (kibbled), chopped, minced, granules and powder. These go into instant soups, noodles, sauces, ready meals and seasonings, at home and abroad. The town of Mahuva in Bhavnagar district of Gujarat, close to Pipavav port, is the centre of this industry, with dozens of factories that buy white onion from the surrounding farms. Many of them also make dehydrated garlic and fried onion.

Onion Storage and Cold Chain

Onion is mostly stored in ventilated sheds, not in ordinary cold rooms, because it needs dry air more than low temperature. Losses in traditional storage from rotting, sprouting and weight loss can reach a quarter of the stock. To cut this, BARC (Bhabha Atomic Research Centre) runs the KRUSHAK irradiation facility at Lasalgaon. In 2023 it demonstrated that gamma irradiation followed by onion-specific cold storage can keep rabi onion in good condition for about seven and a half months. The government has also tried irradiating buffer-stock onion at a private irradiation unit in Indore.

Government Buying and Buffer Stock

Onion has no minimum support price (MSP). Instead, the central government keeps an onion buffer stock under its Price Stabilisation Fund to calm prices when they shoot up. NAFED and NCCF buy rabi onion from farmers and FPOs, mostly in Maharashtra, between April and June. They store it and release it in the lean months of September to December, through retail sales at fixed prices and supplies to state governments. This buying has become an important outlet for Nashik farmers and FPOs.

Export policy note: The government changes onion export rules often, through minimum export prices, export duty or bans, depending on domestic prices. Always check the current position with DGFT before signing an export contract. Check today's onion export policy

Exchange and Online Price Information

Onion is not actively traded on a commodity exchange today, so there is no futures price to follow. Price discovery happens entirely in the mandi auctions, led by Lasalgaon. Traders follow daily APMC prices on eNAM and Agmarknet, the government's market information portals.

Online and B2B Onion Sellers

A growing share of onion now moves through B2B agri platforms that buy from farmers or FPOs and supply retailers, restaurants and caterers directly, and through online grocery platforms selling to households.

Modern Technology in Onion Farming

Onion farming in Maharashtra has changed a lot in the last two decades. Drip irrigation is now common in the Nashik and Ahmednagar belts. It saves water, allows fertiliser to be given through the drip (fertigation) and gives more uniform bulbs. Raised-bed planting with drip reduces rot in wet years. Better seed from NHRDF and ICAR-DOGR has given farmers dark-red varieties that store longer. Drone spraying for thrips and purple blotch is spreading, and onion-specific ventilated storage designs with bottom ventilation are replacing old sheds.

GI-Tag Onions of India

Lasalgaon Onion (Maharashtra) is a red onion from the Lasalgaon area, known for its pungency and long storage life, and it carries the GI tag. Bangalore Rose Onion (Karnataka) is a small, purplish onion grown around Bengaluru and Kolar and exported mainly to Malaysia, Singapore and Thailand; it was India's first GI-tagged onion. Alibag White Onion (Raigad, Maharashtra) is a sweet white onion valued for its medicinal reputation and sold as braided bunches.

Onion by State

Tap a state for its districts, markets, government buying and buyers.

MaharashtraKarnatakaMadhya PradeshGujaratRajasthanBiharAndhra PradeshTelanganaUttar PradeshHaryanaWest Bengal

Processed Products

Dehydrated Onion and Garlic

GI-Tagged Products

Lasalgaon OnionBangalore Rose OnionAlibag White Onion

Related: SpiceIndustry.in for garlic and spice trade · Soils.in for farmer help on soil, irrigation and schemes · FoodProcessingIndustries.in for food processing

Names are listed for reference only and do not imply endorsement or affiliation. The About and Explore buttons open Google in a new tab; results there are generated by Google and third parties, not by this site. Prices, MSP, export rules and schemes change often. Nothing here is financial, legal or purchasing advice. Full disclaimer