Indian onions are being outpriced in the global market by Pakistan and China. This is because international buyers have got used to the commodity from other countries due to the Indian government curbs, traders and industry experts said.

“Pakistan is offering onions at $170 a tonne cost and freight (CNF), Sri Lanka, while Indian onions are quoted at $330 CNF,” said Ajit Shah, President of Horticulture Produce Exporters Association (HPEA). 

 “There is no demand for Indian onions. Arrivals of Pakistan onions continue in the global market,” said M Madan Prakash, Director of Rajathi Group of companies that exports agri-commodities. While Prakash said there were murmurs over the quality of Pakistan onions, Shah said it was good. Pakistan is enjoying a good run in the onion market on two accounts.

Always a foe

“This time, Pakistan’s onion crop is higher. Second, it enjoys an advantage due to fluctuations in currencies,” said Shah. While the rupee rules at 85.42 against the dollar, the Pakistani rupee is 282.94. 

“In addition to these developments, the new arrival of Chinese onion is available at $250. Since it is from the new crop, buyers prefer it,” said Shah.

“Pakistan has always been competitive in the global market. We have new competition from Iran and Egypt. However, over the past week, some demand has emerged,” said Vikas Chaudhary of Nashik-based firm VDI.

Shah said the demand was due to the Israel-Iran conflict since buyers in the Gulf feared supplies could be affected. With the ceasefire between Israel and Iran being announced now, the situation could reverse.

On and off curbs

“Export duty on onions has affected onion shipments. And higher Pakistan crop has also affected Indian shipments,” said Suvarna Jagtap, former chairperson of Lasalgaon Agricultural Produce Marketing Committee (APMC) yard. 

“Even exports of Rose onion, which we dominated, have been affected by the ban. Myanmar has begun cultivating Rose onion, and as a result, we don’t have buyers even at ₹12 a kg. Last year, it was quoted above ₹30 a kg,” said Prakash. 

The Indian government has been curbing onion exports on and off. On August 19, 2023, it imposed a 40 per cent export duty on onions. However, on October 28, 2023, it scrapped the duty and imposed a $800/tonne minimum export price (MEP). 

Since these measures failed to curb onion exports, it imposed a total ban was imposed from December 8, 2023. However, the Centre said it would allow onion exports based on requests from foreign countries on a case-by-case basis. 

Arrivals good

In May 2024, the government lifted the ban on onion exports. However, it imposed a 40 per cent export duty, besides an MEP of $550 a tonne. On September 14, 2024, the MEP was scrapped and the export duty was halved to 20 per cent. The 20 per cent export duty was scrapped on April 1, 2025, following reports of good rabi production of onions.

Data showed that despite curbs, India exported 17.17 lakh tonnes (lt) of onions in the 2023-24 fiscal year and about 11.75 lt in the 2024-25 fiscal. Monthly export of onions increased during the end of 2024 and early 2025. 

Prakash said onion arrivals in the domestic market were good and the best quality was available between ₹22 and ₹23 a kg. Shah, Chaudhary and Jagtap said onion prices were ruling stable between ₹14 and ₹20 a kg. 

Currently, the weighted average price of onions across Maharashtra APMC yards is ₹1,400 a quintal. During the same time a year ago, the price was ₹2,773 a quintal. 

Local output up 6.5 mt

Besides lower exports, onion prices are under pressure as the production in the 2024-25 crop year has been estimated 6.5 million tonnes (mt) higher at 30.77 mt compared with 24.27 mt in 2023-24. 

“Our onion production is higher because many States have begun to grow the crop. Madhya Pradesh, Gujarat, Karnataka, and other such States are growing it,” said Jagtap.

Jagtap said farmers are currently holding back their stocks and this has helped prices to stabilise. “Farmers could continue to bring more area under onion as a committee from the National Agricultural Marketing Cooperative Federation (Nafed) is currently consulting farmers to purchase onions directly from farmers (under the price stabilisation scheme or PSS),” she said.

The discussions between Nafed and farmers have been continuing for nearly three months now. If any agreement is reached, the cooperative could begin buying onions from the kharif harvest.

No losers barring exporters

“Farmers get ₹500/quintal advantage if they sell to Nafed,” she said. 

 HPEA’s Shah said that in the current situation, there were no losers except exporters. “Farmers are happy, consumers are happy, and the government is happy,” he said. 

Nafed procured 4.7 lt of onions for buffer stocks during the rabi marketing season that began in April 2024. They were procured at an average ₹2,833 per quintal compared with 2,833 per quintal ₹1,724 the previous year. 

Onions from the buffer stocks were released between September and December 2024 through retail outlets and mobile vans at ₹35 per kg to consumers and also through open market disposal to augment the supply in major consumption centres.

This year, the Centre decided to procure 3 lt tonnes from the rabi harvest, with 80 per cent beign purchased in Maharashtra. However, a delay in starting the procurement has affected the process. Rains in late May affected onions in some places, with growers blaming the delay in procurement for the losses they suffered.

Published on June 27, 2025