India's onion sector recorded export earnings of ₹2,137 (US$235.6 million) crore between April and November 2025, down 20 per cent from ₹2,663 (US$293.7 million) crore during the same period last year.
Industry representatives attribute the decline to frequent policy changes, including export bans, minimum export prices, and shifting government measures. According to stakeholders, these actions have affected India's position in the global market, with some buyers sourcing onions from China and Pakistan.
Maharashtra accounts for a large share of India's onion exports, and the slowdown has had a direct impact on Nashik district. Lower export demand has increased domestic arrivals, contributing to price declines in mandis. Reports indicate that prices in several markets have fallen below production costs.
Unseasonal rainfall in growing regions has added to the pressure, with crop losses reported. Farmer groups and trade bodies have submitted representations to central and state authorities requesting intervention.
Dnyaneshwar Jagtap, Chairman of the Lasalgaon Market Committee, said, "Without a stable, long-term export policy, international customers are shifting to other countries. Once these markets are lost, it becomes extremely difficult to win them back."
Manoj Jain, an exporter from Lasalgaon, said, "Onion is not just a domestic commodity; it is a key foreign exchange earner. Instead of temporary price controls, we need a transparent and predictable export policy that protects farmers, traders, and exporters alike."
Farmer Rambhau Bhosale from Gondegaon stated, "We are getting prices that do not even cover production costs. If the situation continues, many farmers will be forced into debt."
Stakeholders have proposed several measures to stabilise the market. These include exploring export opportunities in the Philippines, Jordan, Europe, the US, and Australia, supported by a defined export roadmap. Immediate procurement by NAFED under the Price Stabilisation Fund has also been suggested to reduce domestic supply pressure.
Additional recommendations include faster rail logistics through Kisan Rail or dedicated commercial services enabling delivery within 48 to 60 hours, and the creation of a Price Deficiency Fund financed through export-related charges to compensate farmers when prices decline.
Industry representatives state that policy clarity and coordinated market measures are required to address the current export and pricing environment.
Source: Free Press Journal
