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 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.
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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.
The major small onion growing states are Tamil Nadu, Karnataka and Andhra Pradesh.