Dehydrated onion prices are built mainly on the cost of fresh white onion, because several kilos of fresh onion go into each kilo of dried product. Drying fuel, power, labour, packing and the plant's margin come on top, and export demand moves the final number up or down.
Prices are often at their lowest when the new crop arrives in volume and plants compete to fill their order books. That is a tendency, not a rule. A short crop can make new season prices higher than the year before.
What goes into the price
- Fresh onion cost: the largest single factor, driven by local market arrivals and prices.
- Yield: how many kilos of fresh onion make one kilo dried. This depends on the dry matter of the crop and varies by season.
- Energy: belt dryers use a lot of heat, so fuel prices matter.
- Labour: peeling, sorting and packing are labour intensive.
- Processing: milling, sieving, colour sorting and any steam treatment.
- Grade and form: whiter grades and specialised cuts cost more. Powder adds milling cost.
- Packing and freight to port.
- Demand: large orders from export markets can tighten supply and lift prices.
How quotes are built
Most Mahuva plants quote FOB an Indian port, often Pipavav or Mundra, or CIF to your port. Make sure you compare like with like: same form, grade, microbiology, packing and incoterm. Our guide to comparing quotes from Indian exporters gives a checklist.
A quote far below others usually hides something: a lower grade, untreated product described as low microbial, higher moisture, lighter packing or a trader's margin on someone else's goods.
When prices tend to be lowest
- When fresh white onion arrives in volume and plants are drying at full capacity.
- When the crop is large and dry matter is good, which raises yield.
- When export demand is quiet.
When prices tend to rise
- When fresh supply ends and plants rely on stock or more distant onion.
- After poor weather that cuts the crop or its quality.
- When fresh onion prices jump in the domestic market.
- When government measures change the fresh onion trade.
Booking ahead
Many buyers fix a price for part of their annual volume during the main season and call off shipments later. That protects against later rises, but you need a reliable plant and clear terms on quality, storage and delivery dates. Forward or seasonal price booking explains how these contracts work, and how fresh onion price affects dehydrated onion prices explains the main driver in more detail.
How we help
We follow fresh onion arrivals and plant pricing around Mahuva, so we can tell you whether a quote reflects the current market. We negotiate with processors for you and help you book seasonal volumes with clear quality terms. Ask for a free sourcing review.