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Onion Exports Resume Amid Price Surge: What It Means for Farmers and the Market

by Tatyana Ivanovich
December 6, 2024
in News, Onion
0
Onion Exports Resume Amid Price Surge: What It Means for Farmers and the Market

India’s onion exports have recommenced after a two-month hiatus, providing an opportunity for farmers and exporters alike. The export resumption follows a period of volatile prices and challenging climatic conditions that disrupted onion production. Let’s explore the factors driving this change and its implications.


Current Scenario in Onion Exports

Indian exporters recently resumed shipments, with Malaysia leading the demand. Notably, Gujarat’s onions, often used for pickling, have become a preferred choice due to their adaptability as substitutes for Bangalore rose onions. According to the Agricultural Commodity Exporters Association (ACEA), exporters anticipate a significant increase in volumes as the Kharif onion harvest reaches its peak.

The export price dynamics are reflective of supply pressures:

  • Current export prices hover around $700-$800 per ton for Indian onions.
  • In contrast, the premium Bangalore rose onions command up to $1,300 per ton, creating an opportunity for Gujarat’s onions to capture market share.

Production Trends and Challenges

India’s onion production in 2023-24 is expected to decline by 6 million tons, a sharp drop from 30.02 million tons in 2022-23 to 24.24 million tons. This decrease has driven prices to a five-year high, with the following contributing factors:

  1. El Niño’s Impact: Prolonged dry spells due to El Niño adversely affected the 2022-23 crop cycle, and residual effects persisted into the current season.
  2. Delayed Kharif Harvest: Heavy rains and unseasonal weather delayed the harvest, pushing it from October to late November.

Kharif onion sowing, however, showed a notable increase:

  • 3.82 lakh hectares under cultivation in 2023, compared to 2.85 lakh hectares in the previous year.

Policy Measures and Market Dynamics

To stabilize domestic prices and manage export pressures, the government implemented measures:

  • Introduced a 40% export duty in early 2023, later reduced to 20% in September.
  • Set a Minimum Export Price (MEP) to ensure domestic availability, which was also removed by September.

Despite these efforts, domestic prices have remained high:

  • In Maharashtra’s Lasalgaon, India’s largest onion market, model prices for Rabi onions reached ₹5,700 per quintal.

Future Outlook

The quality of the Kharif onion crop has been reported as good, with increased arrivals expected in the coming weeks. This should alleviate price pressures domestically and enhance competitiveness in export markets. However, global buyers remain cautious due to elevated costs, highlighting the need for balanced trade policies.


The resumption of onion exports marks a critical juncture for Indian agriculture. While high domestic prices benefit producers, they also highlight vulnerabilities in supply chains and the need for climate-resilient farming practices. Policy measures will play a key role in balancing domestic needs with export opportunities in the coming months.


Tags: Agricultural ExportsEl Niño impactexport policyglobal onion marketIndian agricultureKharif onion productiononion exportsonion price trendssustainable farming
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