India's onion export sector is facing reduced shipments and lower prices, with the impact visible at the Lasalgaon Agricultural Produce Market Committee in Nashik.
Exports to Gulf markets declined by nearly 45 per cent, while shipments in March 2026 reached around 350 containers compared with nearly 600 containers in March 2025. According to Vikas Singh of the Agricultural Exporters Association, global onion exports have also declined by around 35 per cent, affecting demand.
Freight costs have increased, with container charges for Gulf exports rising from US$600 to US$700 to around US$6,500. Higher transport costs have reduced competitiveness, while countries such as Yemen and Egypt are supplying onions to Gulf markets at lower rates through road transport.
Market prices have declined. In March 2026, summer onions reached ₹1,500 per quintal (US$18.00 per 100 kg), while red onions reached ₹1,417 per quintal (US$17.00 per 100 kg). In March 2025, prices were ₹2,627 per quintal (US$31.50 per 100 kg) for summer onions and ₹3,101 per quintal (US$37.20 per 100 kg) for red onions.
Unseasonal rains and hailstorms in the Nashik district have also affected production levels. Local authorities are coordinating with railway operators to improve domestic logistics, while exporters have requested measures including freight cost control and a 10 per cent export subsidy.
Export volumes have shown variation in recent years. India exported 2.525 million tons in 2022–23, generating ₹4,522 crore (US$542 million). In 2024–25, exports declined to 1.147 million tons valued at ₹3,822 crore (US$459 million). For 2025–26, exports up to January reached 1.283 million tons, generating ₹2,970 crore (US$356 million).
The combination of lower exports, higher logistics costs, and weather-related crop losses is affecting returns for onion growers in Nashik.
Source: Free Press Journal
