Nashik: Struggling Onion Farmers Face New Crisis As Pakistan Boosts Production

Nashik: While India’s onion market continues to struggle with sluggish demand and falling prices, neighbouring Pakistan has set an ambitious production target of 2.78 million tonnes for the 2025–26 season. Major onion-growing provinces — Sindh, Punjab, Balochistan and Khyber Pakhtunkhwa — have expanded cultivation plans, raising concerns that increased output may directly affect India’s dominance in regional markets, agricultural experts warn.

India is already facing oversupply, price drops, and export hurdles. A surge in Pakistan’s output could intensify competition in Asian export destinations. Countries like Bangladesh, Sri Lanka and Nepal, traditionally strong markets for Indian onion exporters, may shift partially toward Pakistan due to its lower production costs and potentially cheaper export prices.

Bangladesh has set its own vision to strengthen its position in the onion export trade by 2028. Currently, over 40% of India’s onion exports are purchased by Bangladesh. In the 2024–25 financial year, India exported 4.80 lakh metric tonnes of onions to Bangladesh, earning ₹1,724 crore in foreign exchange. With Bangladesh now seeking to expand exports itself, India will be compelled to find new markets and strengthen its export strategies.

At present, prices in major Indian markets including Lasalgaon are hovering between ₹1,100 and ₹1,300 per quintal. In comparison, Pakistan’s lower production cost allows it to supply onions in the international market at reduced prices — a clear competitive threat for India.

Farmer Distress Worsens with:

Slower exports

Further price decline

Higher storage costs

Reduced market access

What Should India Do? Experts recommend:

 Strengthening export incentives
 Boosting quality and processing infrastructure
 Expanding presence in global markets
 Adopting a long-term export policy