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In Nashik, the Horticulture Produce Exporters' Association (HPEA) urged the central government to offer a 5% incentive on onion exports to help stabilize wholesale prices and enhance international competitiveness. This appeal follows a sharp 60% decline in average wholesale onion prices at major APMC markets like Lasalgaon over the past two months, despite the recent removal of the 20% export duty on April 1, 2025. At Lasalgaon, India’s largest wholesale onion market, prices have plummeted from USD 36.31 per quintal on February 14 to just USD 14.64 per quintal. Summer onions, which now make up around 90% of arrivals, are fetching USD 14.64 per quintal, while late kharif onions are priced even lower at USD 10.54 per quintal.
To prevent further losses for farmers and make Indian onions more competitive globally, exporters are asking the government to raise the Remission of Duties and Taxes on Exported Products (RoDTEP) rate from 1.9% to 5%. The HPEA highlighted that Pakistan exported onions at USD 190 per metric ton (mt), while Indian onion export prices range from USD 230 to 300/mt, depending on quality. The association argues that increased export incentives are crucial to counter price disparities, boost export volumes, and support the livelihoods of onion growers.
On April 7, Nigeria’s Minister of State for Industry and Investment inaugurated a 10 thousand mt capacity onion storage facility in Gadar Tamburawa, Dawakin Kudu LGA, Kano State, to combat post-harvest losses among onion farmers. The facility aims to address significant storage challenges faced by farmers, particularly in northern Nigeria. Enoh emphasized the Federal Government’s commitment to supporting innovative solutions that reduce post-harvest losses and bolster food security. Such initiatives will enhance agricultural development, generate employment, and align with the President's agenda to boost farmers' incomes and reduce wastage.
In W15, India’s onion prices declined by 6.25% week-on-week (WoW), 6.25% month-on-month (MoM), and 11.76% year-on-year (YoY) to USD 0.15 per kilogram (kg), reflecting ongoing market pressures from oversupply. The removal of the 20% export duty on April 1, 2025, followed a sharp 39% drop in wholesale prices as the government sought to support farmer incomes by encouraging higher exports. While this policy shift may offer short-term price relief, its long-term impact hinges on the balance between export demand and domestic supply. If international demand picks up substantially, it could help lift prices. However, if domestic supply remains high and export uptake is limited, onion prices may decline despite improved market access abroad.
In W15, onion prices in the Netherlands surged by 25% WoW, 50% MoM, and 76.47% YoY to USD 0.30/kg, driven by tight supply and strong export demand. The 2023/24 onion harvest faced major disruptions due to excessive autumn rainfall, particularly in Zeeland and Flevoland, which delayed harvesting and led to higher rot levels during storage. As a result, marketable stocks by early 2025 were nearly 25% below the five-year average. At the same time, strong export demand, especially from West African countries like Senegal and Côte d’Ivoire, experienced below-average local harvests, and Southeast Asia boosted Dutch onion shipments. Shipments exceeded 1.3 million metric tons (mmt) in Q1-2025, marking a 5% YoY increase. Additionally, a YoY rise of 18% in energy and storage costs further contributed to the upward pressure on wholesale prices.
In W15, Mexico's onion prices fell by 3.23% WoW to USD 0.30/kg, reflecting an 11.76% MoM decrease and a sharp 62% YoY decline. The drop is mainly due to a surge in supply from key producing states like Zacatecas, Tamaulipas, and Guanajuato. According to SIAP, onion production in Q1-25 reached around 450 thousand mt, a 22% YoY increase. Favorable weather, marked by mild temperatures and evenly distributed rainfall, boosted yields, while stable fuel prices and improved logistics helped lower transportation costs, supporting more competitive domestic pricing. The steep YoY decline also indicates a return to normal price levels following early 2024's spike caused by drought and reduced planting.
In W15, Egypt’s onion prices held steady at USD 0.12/kg, showing no weekly change but declined sharply by 80% YoY. Favorable weather conditions in key growing regions like the Nile Delta and Upper Egypt have sustained production levels. In response to the 2024 global onion shortage, farmers expanded planting areas, keeping the 2025 harvest on track to reach 3 mmt, similar to last year’s output. Domestic demand remains stable at 1.2 mmt while rising export interest from Europe and Africa will absorb the surplus. Although stable yellow onion yields will minimize short-term price fluctuations, increased export momentum could gradually drive prices upward over time.
In W15, Spanish onion prices rose by 15.56% WoW and 52.94% MoM to USD 0.52/kg, driven by tightening domestic supply and strong export demand. Spain’s 2024/25 onion production is projected at 1.12 mmt, reflecting a 4.3% decline from the previous season. This drop is due to a 7.1% YoY reduction in planted area in Castilla-La Mancha to 19,800 hectares (ha), coupled with erratic spring temperatures that hindered crop development. At the same time, robust demand from export markets such as France and Germany continues to push prices upward.
The Indian government should raise the Remission of Duties and Taxes on Exported Products (RoDTEP) rate for onions from 1.9% to 5%. This would help Indian onions become more competitive globally, counteracting price disparities with countries like Pakistan, which is able to export onions at a significantly lower price. By providing this export incentive, India can increase its export volumes, stabilize domestic prices, and enhance the international competitiveness of Indian onions. This will also help protect farmer incomes and reduce the impact of the recent price decline in domestic markets.
Governments and private stakeholders in onion-producing countries like India, Nigeria, and Egypt should invest in large-scale, climate-controlled storage facilities for onions. These facilities can reduce post-harvest losses, ensure year-round availability, and stabilize the supply of onions. Storing onions during peak harvest seasons will allow consistent pricing throughout the year, reduce seasonal price fluctuations, and help address supply-demand imbalances. This will lead to less waste and a more reliable supply for domestic and export markets.
Mexico should explore expanding its export reach by targeting new markets in Southeast Asia, the Middle East, and Africa, alongside its traditional markets in the United States (US) and Central America. To do this, Mexico can focus on enhancing its export quality and packaging, ensuring it can meet the specific needs of diverse international buyers. By diversifying export destinations, Mexico can mitigate the impact of domestic price drops and reliance on regional markets. Expanding to new regions will stabilize prices and secure higher revenue for onion producers, fostering long-term growth in the export sector.
Sources: Tridge, Times of India, The Will News
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