Nashik: The ongoing conflict involving the United States, Israel and Iran has hit India’s onion exports, leading to a sharp fall in prices at the Lasalgaon Agricultural Produce Market Committee, Asia’s largest onion market.
Exports to Gulf countries have reportedly dropped by nearly 45 percent as the war-like situation has pushed up container transport costs and slowed shipments. Despite the challenges, exporters managed to ship around 350 containers in March 2026, compared to nearly 600 containers in March last year.
According to Vikas Singh, Vice President of the Agricultural Exporters Association, global onion exports have also declined by around 35 percent, further affecting demand.
The impact is clearly visible in market prices. In March 2026, summer onions fetched a maximum of ₹1,500 per quintal, while red onions reached ₹1,417 per quintal. This is a steep fall compared to March 2025, when summer onions were priced at ₹2,627 per quintal and red onions at ₹3,101 per quintal. The price crash has left farmers in distress.
Freight costs have risen sharply due to the conflict, which has now entered over a month. Container charges for Gulf exports, which earlier ranged between $600 and $700, have surged to nearly $6,500, making exports far more expensive.
At the same time, countries such as Yemen and Egypt are supplying onions to Gulf markets at lower rates through road transport. This has reduced demand for Indian onions.
Pravin Kadam, onion exporter and trader-director at the Lasalgaon APMC, has urged the central government to control rising freight charges and provide at least a 10 percent subsidy on onion exports to support farmers and traders.
Dnyaneshwar Jagtap, Chairman of the Lasalgaon APMC, said unseasonal rains and hailstorms have also damaged onion crops in Nashik district, adding to the crisis. He said efforts are being made to coordinate with railway authorities for freight trains to improve domestic transport, while the APMC is also following up with the central government to boost exports.
Data on onion exports shows fluctuating trends in recent years, with 25.25 lakh tonnes exported in 2022–23 earning ₹4,522 crore, while exports fell to 11.47 lakh tonnes worth ₹3,822 crore in 2024–25. For 2025–26, exports till January stood at 12.83 lakh tonnes, generating ₹2,970 crore.
The combined impact of falling exports, rising costs and crop damage has created a challenging situation for onion farmers in Nashik, with many facing growing financial pressure.
