India’s onion exports have come under further pressure this financial year, showing a sustained decline due to changing global market dynamics.
Exporters said shipments have slowed mainly due to lower offtake from key buyers such as Bangladesh and Saudi Arabia, as these countries are increasingly dependent on their domestic production.
policy impact
This structural shift in demand has reduced shipment volumes, even as competitive pressures are impacting exports.
The weak currency of Pakistan, a major competitor origin, has increased its price competitiveness in international markets, making it more difficult for Indian exporters to defend market share, especially in price-sensitive destinations.
“The demand is there, but we have lost some markets. Bangladesh, one of the biggest buyers, is not buying from us. Many countries have developed their own crops; now even Saudi, which is a good buyer, is not buying,” said Ajit Shah, president of the Horticulture Exporters Association.
“Also, India imposed sanctions 2-3 years ago. So all our traditional buyers shifted to other suppliers like Pakistan, Sudan and Yemen,” he said.
Earlier these countries used to export small quantities for about 2-3 months in a year. Now they are exporting for 6-7 or even nine months a year, Shah said, adding that as a result, “buyers have started comparing our price with these other suppliers”.
“Our quality has always been good compared to other suppliers, but now every market is price sensitive. So our volume, our share in demand has gone down and that is why exports are not so high. But it is not so low either,” Shah said.
According to DGCIS data, India’s onion exports during April-December of the current financial year registered a 22 per cent decline in value at $298.69 million compared to $380.08 million last year.
increase volume
However, shipment volume during the period increased by 37 per cent to 11.33 lakh tonnes as compared to 8.26 lakh tonnes in the same period last year.
In fact, onion consignments have been on a declining trend in recent years, when the ban was imposed in December 2023 till March 2024 to ease domestic supplies. All restrictions were lifted by March 2025 as supplies improved.
Besides, Shah said, Bangladesh, when it does not have its own crop, is buying the maximum quantity from Pakistan, while Saudi Arabia is buying from Yemen and Sudan.
“Our prices are similar or higher by about $10-50 per tonne compared to onions from Sudan or Yemen. However, we are costlier than Pakistan because there is a huge difference between their dollar rate and our rate. Our dollar-rupee rate is 90.5, while their dollar-Pakistani rupee rate is 280 and that is the main reason why they are cheaper than us in the international market,” Shah said.
Although Indian onions are being exported to Sri Lanka and West Asian countries, Shah said Rabi arrivals will start soon.
Rabi’s arrival
Trade sources said prices have eased in recent weeks as arrivals have improved.
According to Agmarknet data, model prices in the major producing state Maharashtra are hovering between ₹775-1,500 per quintal.
All India average wholesale mandi prices have declined to ₹1,085.64 per quintal on February 24 from ₹1,410.44 per quintal a week ago on February 17.
Shah said the Rabi onion crop is expected to be bigger than last year.
Published on February 26, 2026
