Nashik: India’s onion sector, a crucial pillar of the country’s agricultural exports, is facing a serious crisis this financial year. Between April and November 2025, onion exports brought in ₹2,137 crore in foreign exchange. However, this marks a sharp 20 per cent decline compared to the same period last year, when exports generated ₹2,663 crore.
The steep fall highlights the damaging impact of frequent policy changes on the industry. Export bans, sudden imposition of Minimum Export Prices (MEP), and unpredictable government decisions have weakened India’s credibility in the global onion market. As a result, several long-standing buyers are now turning to alternative suppliers such as China and Pakistan, causing India to lose valuable market share.
Since a large portion of the country’s onion exports originates from Maharashtra, the impact has been most severe in the state’s onion belt, especially in Nashik district. With exports slowing, domestic arrivals have surged, leading to a sharp fall in prices. In many mandis, farmers are now receiving rates that are below their cost of production, worsening the agrarian crisis.
The situation has been compounded by unseasonal rainfall in several growing regions, which has already caused heavy crop losses. With market prices continuing to crash, farmer groups and trade bodies have submitted representations to both the central and state governments, demanding immediate steps to stabilise the market.
Dnyaneshwar Jagtap, Chairman of the Lasalgaon Market Committee, said inconsistent export policies are driving foreign buyers away.
“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,” he warned.
Manoj Jain, an onion exporter from Lasalgaon, echoed similar concerns.
“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,” he said.
Farmer Rambhau Bhosale from Gondegaon said growers are under extreme financial stress.
“We are getting prices that do not even cover production costs. If the situation continues, many farmers will be forced into debt,” he said.
To arrest the fall in Kharif and late-Kharif onion prices, stakeholders have suggested the following immediate interventions:
Explore new international markets in the Philippines, Jordan, Europe, the US and Australia, supported by a clear export roadmap from the Centre.
Immediate procurement by NAFED under the Price Stabilisation Fund to reduce excess supply in domestic markets.
Faster rail logistics through Kisan Rail or dedicated commercial services instead of BCN rakes, enabling delivery within 48–60 hours and better price realisation.
Creation of a Price Deficiency Fund, financed through export-related charges, so that farmers can be directly compensated when market prices crash.
With onion farmers already battling weather losses and rising input costs, industry leaders warn that unless swift and decisive policy action is taken, the damage to India’s onion export sector, and to the livelihoods of thousands in Nashik, could become long-term and irreversible.
