Nashik: Indian onion exports are under severe pressure this year, and its direct impact is now being felt in major onion markets across the country. A slowdown in global demand, intense international price competition, and rising domestic stock levels have put heavy pressure on prices. This situation is particularly evident at the Lasalgaon Agricultural Produce Market Committee, Asia’s largest onion market.
In Lasalgaon’s wholesale market, onions are currently fetching an average price of ₹800 to ₹1,000 per quintal. At these rates, farmers are unable to even recover production, storage, and transportation costs, pushing them into serious financial distress.
Traditional Importing Countries Turn Away
A sharp decline in demand from traditional importing countries has dealt a major blow to Indian onion exports. Countries such as Bangladesh and Saudi Arabia have significantly reduced their onion purchases from India. In several countries, increased local production has further reduced dependence on imports.
Pakistan’s Price Competition Becomes a Major Challenge
In the international market, Pakistan has emerged as a strong price competitor. Pakistani onions are available at comparatively lower prices, prompting many importing countries to prefer them over Indian onions. As a result, India’s competitive edge in the global onion trade has weakened considerably.
Exporters also point out that the impact of earlier restrictions imposed by India on onion exports has not fully faded. During that period, many importing countries identified alternative suppliers, and those trade routes continue to be used even now.
Rising Arrival of Rabi Onions to Add Further Pressure
Large quantities of onions are arriving daily in the Nashik district. With exports slowing, domestic stocks are piling up. Onion auction prices at Lasalgaon market have remained under pressure in recent weeks. Moreover, the arrival of fresh rabi-season onions in the market is expected to exert additional downward pressure on prices in the coming days.
Demand for Government Intervention
Considering the hardships faced by onion-growing farmers, there is a strong demand for immediate intervention by the state government. State Food and Civil Supplies Minister Chhagan Bhujbal had earlier emphasised the need for subsidies and a stable export policy to provide relief to onion producers. Farmer organisations have urged both the central and state governments to work in coordination and take concrete steps to boost exports.
Global market shifts, rising price competition, and growing domestic stocks have created serious challenges for Indian onion exports. The direct impact is being borne by farmers in the Lasalgaon–Nashik belt. If the situation persists, the difficulties faced by onion producers are likely to intensify further in the coming period.
If an independent “Onion Price Stabilisation Mission” is set up at the state level, bringing together the central and state governments, market committees, and exporters, volatility in the onion market can be reduced. The government must take immediate and effective decisions in this regard.
— Prakash Patil, Shiv Sena, Niphad Taluka President
