India's onion exports have fallen sharply by more than ₹1,100 crore this year, a decline exporters attribute to government restrictions, reduced demand from key markets such as Bangladesh, and intensifying competition from neighbouring countries. The downturn has put onion farmers—especially those in Nashik's Lasalgaon, home to one of Asia's largest onion markets—under severe financial stress.
Traders say exports have been constrained by high export duties, a subsequent ban, stronger domestic production in rival countries, and currency fluctuations. In 2024, India earned ₹4,500 crore from onion exports, including ₹1,700 crore from Bangladesh alone. This year, earnings have dropped to ₹3,100 crore, with exporters citing Bangladesh's decision to halt imports to support its domestic market, coupled with India's own curbs imposed between 2023 and 2025.
Before restrictions took effect, India had shipped nearly 2.5 million tonnes of onions in 2023. Pakistan, meanwhile, exported about 220,000 tonnes between December 2024 and March 2025 and is now planning to scale up production to 27.8 million tonnes for the 2025–26 crop year—posing further competitive pressure.
At home, farmers are reeling from low prices. Onion rates in Lasalgaon hover around ₹1,400–₹1,500 per quintal, well below production costs and far from the ₹4,900 per quintal prices seen last November. Unseasonal rains from May to mid-November have worsened losses by damaging standing crops.
Vikas Singh, vice-president of the Onion Exporters Association, said India typically sells 25–28 lakh tonnes of onions annually to countries such as Bangladesh, Nepal and Indonesia, but volumes have fallen by 15 lakh tonnes in the last three years. He warned that India faces "stiff competition" across South Asia, the Middle East and Southeast Asia.
The association has urged the Centre to increase export incentives, including the current 4% benefit on vegetables and the 1.9% RoDTEP rate on onions. Singh said the government appeared receptive to the proposal.
However, the government's procurement of large onion stocks through NAFED and NCCF—to keep urban prices stable—has drawn criticism from farmer groups.
Source: www.etvbharat.com
