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India's Alathur and Perambalur farmer's block celebrated the recent Geographical Indication (GI) tag grant for the Chettikulam small onion. Eighteen villages grow this variety, which features a pinkish outer skin and pungent flavor due to the region’s sulfur-rich soil. They cultivate it across 8 thousand hectares (ha), producing between 60 thousand metric tons (mt) and 70 thousand mt annually. Farmers actively sought the GI tag to protect their crops after rains reduced their yields. The GI status will boost market visibility and help producers secure fairer prices.
India's Union Minister for Agriculture and Farmers' Welfare and Rural Development announced that the government has decided to reduce the export duty on onions by 20%, effective from April 1, to ensure that farmers receive a remunerative price. In 2023, the government imposed a 40% duty on onions to discourage exports, as increased domestic demand had pushed retail prices higher.
Farmers deserve remunerative prices for onions in global markets. To ensure domestic availability, the government implemented measures to control exports through duty, minimum export price (MEP), and even an export prohibition for almost five months, from December 8, 2023, to May 2024. Despite these restrictions, exports have continued to rise over the past two years. Data reveals that onion exports totaled 1.72 million metric tons (mmt) in 2023/24 and 1.17 mmt in 2024/25 (until March 18). Experts suggest that the government anticipated a higher Rabi onion production, which could lead to a price crash. Therefore, the government has taken precautionary measures to support farmers by reducing the export duty.
Agriculture ministry data shows Rabi onion production is estimated at over 22.7 mmt in 2025, an 18% increase from 2024’s 19.2 mmt. The arrival of onions in Asia’s largest onion markets, Lasalgaon and Pimpalgaon in Maharashtra, has increased, triggering a downward price trend.
The Secretary of the Department of Agriculture initiated the first Onion Research and Extension Center in Bongabon, Nueva Ecija, the leading onion-producing municipality, to revitalize the onion industry. The government will establish the Bongabon Agricultural Trading Center compound to improve pest and disease management, enhance seed quality, and boost yields. The Department of Agriculture (DA) chief emphasized achieving onion self-sufficiency and eliminating imports, highlighting the need to train farmers in modern techniques, potentially using China’s best practices as benchmarks. Local government officials actively join DA programs to strengthen food security, stabilize prices, and stop smuggling activities threatening onion farmers’ livelihoods.
Although Nueva Ecija leads the country in rice production, it also ranks as the top onion-producing province, with Bongabon at the forefront. According to 2024 data from the Philippine Statistics Authority, farmers in Central Luzon planted approximately 12,726.11 ha of land with onions, producing 158,088.41 mt, making up 59.80% of the national output. Bongabon alone contributed about a quarter of the region’s onion production, or roughly 15% of the nation’s total output last year.
India’s onion prices dropped by 5.88% week-on-week (WoW) to USD 0.16 per kilogram (kg) in W14, mirroring a 5.88% decline month-on-month (MoM) and year-on-year (YoY). On April 1, 2025, the government removed the 20% export duty on onions following a 39% plunge in wholesale prices, aiming to boost farmer incomes by encouraging exports. This policy move may stabilize prices in the short term, but its long-term effectiveness will depend on export demand and domestic supply dynamics. If export volumes rise significantly, prices could recover. However, if domestic supply continues to outpace demand, prices may remain subdued despite increased foreign interest.
In W14, Netherlands onion prices rose 9.09% WoW, 33.33% MoM, and 26.32% YoY to USD 0.24/kg, primarily due to constrained supply and robust export demand. The 2023/24 Dutch onion harvest was significantly impacted by excessive rainfall during autumn, particularly in provinces like Zeeland and Flevoland, which led to harvest delays and increased rot during storage. By early 2025, marketable stocks were nearly 25% below the five-year average. Meanwhile, strong demand from West Africa, notably Senegal and Côte d’Ivoire, where domestic harvests were below average, and from Southeast Asia boosted Dutch exports. Onion exports from the Netherlands reached over 1.3 mmt in Q1-25, a 5% increase YoY. Additionally, rising energy and storage costs up by 18% YoY further supported price increases in the wholesale market.
In W14, Mexico's onion prices declined 11.43% WoW to USD 0.31/kg, marking an 8.82% MoM decrease and a sharp 71.30% YoY drop. This significant price fall is primarily due to a surge in supply from key producing states such as Zacatecas, Tamaulipas, and Guanajuato. According to Mexico’s agricultural information system (SIAP), onion production in Q1-25 reached approximately 450 thousand mt, up 22% YoY. Favorable weather conditions, particularly mild temperatures, and well-distributed rainfall contributed to higher yields. Moreover, improved logistics and stable fuel prices helped reduce transport costs, enabling more competitive pricing in domestic markets. The steep YoY decline also reflects the normalization of prices after the exceptionally high levels seen in early 2024, which were driven by drought and reduced acreage.
Egypt's onion prices remained stable at USD 0.12/kg in W14, with no weekly change but a 7.69% MoM and 80% YoY decrease. Favorable weather in key regions, including the Nile Delta and Upper Egypt, has supported production levels. Following the global onion shortage in 2024, expanded planting has maintained supply, with the 2025 harvest expected to reach 3 mmt, matching last year's levels. While local demand remains steady at 1.2 mmt, rising export interest from Europe and Africa is expected to absorb excess supply. However, with stable yellow onion yields, short-term price volatility is likely to remain minimal, though increased export activity could gradually push prices higher in the long term.
In W14, Spanish onion prices increased by 15.38% WoW and 32.35% MoM to USD 0.45/kg. The rise was driven by tightening domestic supply, with Spain’s 2024/25 onion production estimated at 1.12 mmt, down 4.3% from the previous season. The decline is mainly due to reduced acreage in Castilla-La Mancha, which contracted 7.1% YoY to 19,800 ha, and erratic spring temperatures that affected crop development. Meanwhile, strong export demand from France and Germany continues to exert upward pressure on prices amid regional supply gaps.
India should prioritize investment in cold storage and efficient transportation systems to prevent price volatility and maintain consistent onion quality. This is especially crucial during peak harvest seasons when oversupply can drive prices down. Improved cold storage facilities will help extend the shelf life of onions, ensuring that they are available in the market during the off-season, stabilizing prices. Furthermore, enhancing transportation networks can reduce transit times, ensuring that onions reach both domestic and export markets in premium condition. By securing timely certifications for export, such as GlobalGAP, India can expand its exports, especially to high-demand regions, and ensure that farmers receive a fair price for their produce.
The Netherlands faces challenges with onion quality due to weather-related issues such as excessive rainfall, which impacts storage and harvest quality. A critical action would be to invest in better post-harvest handling and storage infrastructure to mitigate losses from rot and other damage during storage. Moreover, expanding exports to regions such as West Africa and Southeast Asia, where demand for onions is growing, will help absorb supply and prevent domestic oversaturation. By diversifying export markets and securing long-term contracts, Dutch onion farmers can ensure more stable prices. Further, increasing storage capacity will help hold stocks for export during high demand, maintaining consistent revenue streams for producers.
Mexico’s onion prices have significantly dropped due to a surge in domestic supply. To mitigate this, the government and private sector should improve logistics to ensure faster and more efficient onion distribution to domestic and export markets. This could involve investing in better road infrastructure and reducing transportation costs, increasing Mexico’s competitiveness in international markets. By fostering relationships with key importing nations and securing export certifications, Mexico can better manage its supply and ensure onions are sold at a fair price while contributing to the stability of the domestic market.
Sources: Tridge, Fresh Plaza, New Indian Express, Tribune
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