Robust crop prospects and exports to Gulf countries hit due to the West Asia war, onion prices have in Lasalgaon, Nashik, Maharashtra, the hub of the country’s wholesale trade has declined to around Rs 1100 a quintal on Thursday from Rs 2000/quintal prevailed a year ago.
Traders say that with the arrival of rabi crops for the new season (2025-26) in the market, the prices of onion are likely to remain subdued in coming months.
“Current onion prices are only covering the cost of the production for the farmers, while exports have been hit due to West Asia war has impacted the prices,” Jaydutt Holkar, director, agricultural produce market committee (APMC), Lasalgaon, Nashik, told FE.
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Holkar said that the government should provide some export incentives to boost onion shipment.
Earlier exporters had said that the exports – rice, fruits and vegetables to the Gulf region have been severely impacted due to the West Asia war, as freight costs have risen multiple times while shipping companies are booking consignments in very limited numbers.
Export Crisis
Ajit Shah, a leading onion exporter, said that few consignments carrying onions and vegetables have been sent to Khorfakkan and Fujairah ports, Dubai which are much smaller in term of capacities to handle cargo compared to Jebel Ali Port, one of the busiest container port, in the region.
The modal retail prices of onion according to the department of consumer affairs has dropped to Rs 25/kg on Thursday, a decline of 18% compared to previous year.
The retail inflation in onion had declined by 28.2% in February, 2026 on year. Inflation in onions has been in the negative zone since May 2025.
Buffer Strategy
Govt’s nod for 0.2 MT of onion procurement under PSF
Meanwhile, the government has given a nod for procurement of 0.2 million tonne (MT) of onion from the farmers at market prices for creating a buffer for 2026-27 under the price stabilization fund (PSF).
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The two agencies – Nafed and NCCF – have been directed by the department of consumer affairs to prepare for onion procurement for the rabi season, 2026 based on weekly market price largely in Maharashtra.
These agencies had purchased 0.3 MT and 0.47 MT of key vegetables in 2025 and 2024 respectively.
The procured onions under PSF are offloaded in the market in the calibrated manners when retail prices start rising usually by October.
As per the estimates of the agriculture ministry, onion production in the 2024-25 crop year (July-June) is estimated at 30.76 MT, 27% higher compared to previous crop year.
In the 2025-26 crop year, onion output is expected to be higher on year.
India has exported 1.5 MT of onion in 2025-26 while Bangladesh, Malaysia, United Arab Emirates, Sri Lanka and Nepal were the major export destinations.
In FY25, 1.14 MT of onions were exported.
The rabi onion harvest, accounts for 70-75% of the country’s total onion production, meets the domestic supplies and ensures stability in prices till arrivals of the kharif crops from October onwards.
TOPICSexportsOnionThis article was first uploaded on April nine, twenty twenty-six, at forty-six minutes past ten in the night.