1. Weekly News

Bangladesh

Bengal Expands Onion Storage to Stabilize Prices Amid Seasonal Supply Gaps

The Bengal government has established eight new onion storage units with a 40 metric tons (mt) capacity to enhance reserves and manage price volatility. This follows the 1,400 smaller units already in place, each with a 25-mt capacity. If the pilot project is successful, additional units will be constructed. In 2023/24, Bengal produced 885 thousand mt of onions, while annual consumption ranges between 1 to 1.2 million metric tons (mmt), forcing reliance on supplies from Nashik (Maharashtra), Karnataka, Andhra Pradesh, Rajasthan, and Bihar. The lack of storage forces farmers to sell quickly, creating surpluses from March to June and shortages from July to October. The new humidity-controlled storage facilities in Hooghly, East Burdwan, Murshidabad, Nadia, and Malda aim to preserve onions for up to eight months, reducing shortages and price spikes, especially during festive seasons.

India

India to Remove 20% Export Duty on Onions from April 1

India will lift its 20% export duty on onions starting April 1, 2025, ending nearly five months of export restrictions to secure domestic supply. The duty, imposed on September 13, 2024, was part of broader measures, including minimum export prices and temporary bans. The government stated that the decision balances fair prices for farmers while ensuring consumer affordability.

Myanmar

Conflict Forces Early Onion Harvest in Pwintbyu, Driving Losses and Price Declines

Onion farmers in Pwintbyu Township, Magway, harvested early due to fears of imminent conflict between local resistance forces and the junta. This led to smaller yields, lower-quality onions, and financial losses. Disruptions to irrigation and pesticide application earlier in the season had already reduced productivity, and now farmers are selling at lower prices to avoid further risk. The wholesale price has fallen nearly 35% year-on-year (YoY) in Mar-25, from USD 0.95 to USD 0.62 per 1.7 kilogram (kg). With the harvest ahead of schedule, only two wholesalers are buying onions in Pwintbyu, further limiting selling opportunities. As a result, farmers are recovering only two-thirds of their production costs, putting many at risk of financial hardship.

South Korea

Jeju Onion Harvest Begins in Late Mar-25 as South Korea’s 2024 Output Rises 0.2% YoY

Farmers in Seogwipo, Jeju, began harvesting onions on March 26, marking the start of the island’s onion season, which typically begins in mid-Mar-25. Jeju onions are known for their sweet taste and unique texture, which distinguish them from mainland varieties. According to Statistics Korea, South Korea's total onion production in 2024 increased by 0.2% YoY to 1.18 mmt.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W12 2024 to W12 2025) 

India

In W12, Indian onion prices fell 5.88% week-on-week (WoW) to USD 0.16/kg, down from USD 0.17/kg, due to increased supply following the peak rabi harvest season. Key onion-producing states such as Maharashtra, Madhya Pradesh, and Gujarat reported higher yields, leading to greater availability in wholesale markets. Moreover, weaker export demand, particularly from Bangladesh and Sri Lanka, led to the price decline. The Indian government’s recent relaxation of export restrictions has further increased domestic supply, putting additional downward pressure on prices.

Netherlands

In W12, onion prices in the Netherlands surged 11.11% WoW and 25% month-on-month (MoM) to USD 0.20/kg, driven by red onion shortages and strong organic onion prices. Excessive rainfall earlier in the season resulted in poor red onion yields, limiting supply. Despite the recent price increases, rising overall supply and weak export demand could cap further gains in the short term. However, localized price spikes for red onions may persist due to ongoing shortages, while organic onion prices will remain stable, supported by sustained demand.

Mexico

In W12, Mexico's onion prices dropped MoM to USD 0.34/kg from USD 0.46/kg in W11, driven by an oversupply caused by improved weather conditions in key producing regions like Zacatecas and Guanajuato. Favorable conditions led to an estimated 6 to 8% increase in onion yields compared to the previous season, boosting overall production and stock levels. Moreover, a 4% decline in export orders to key markets in Feb-25 further contributed to the surplus, intensifying downward pressure on domestic prices.

Egypt

In W12, Egypt’s onion prices fell to USD 0.12/kg from USD 0.13/kg, marking a 7.69% WoW and 33.33% MoM decline, as strong local supply pressured the market. Favorable weather in key regions like the Nile Delta and Upper Egypt boosted production. A global shortage in the 2024 season led farmers to expand acreage, increasing supply. While the 2025 harvest will reach 3 mmt, matching 2024 levels, steady local demand at 1.2 mmt will keep supplies high. Although export demand from Europe and Africa will rise, short-term price fluctuations will remain minimal, with stable yellow onion yields supporting overall price stability.

Spain

In W12, Spain's onion prices remained stable WoW and MoM at USD 0.34/kg but declined 20.93% YoY due to tightening domestic supply and strong export demand. The 2024 harvest was impacted by prolonged drought and extreme heat, reducing yields and storage stocks, which limited market availability in early 2025. Moreover, higher demand from key European buyers, particularly France and Germany, has increased prices as these countries seek to compensate for lower domestic production. Rising production costs, including higher irrigation and transportation expenses, further increase prices.

3. Actionable Recommendations

Strengthen Onion Storage Infrastructure in Bengal

Bengal’s initiative to construct eight new onion storage units with a 40 mt capacity is a step toward reducing post-harvest losses and stabilizing prices. However, the current storage expansion is insufficient to address Bengal’s supply-demand gap. To enhance long-term resilience, Bengal should accelerate the construction of additional humidity-controlled storage facilities, particularly in high-production districts such as Murshidabad, East Burdwan, and Hooghly. Increasing storage capacity will allow farmers to spread their sales over a period instead of flooding the market between March and June, preventing seasonal price crashes. Moreover, the government should support farmer cooperatives in adopting low-cost, decentralized storage solutions to enhance accessibility. By expanding storage infrastructure and providing training on post-harvest handling, Bengal can improve onion supply stability and farmer profitability.

Mitigate Financial Risks for Myanmar's Onion Farmers

Farmers in Pwintbyu Township, Myanmar, experienced severe financial losses due to premature harvesting amid security concerns, compounded by reduced yields from disrupted irrigation and pesticide application. The sharp 35% YoY price decline has left many unable to recover production costs. To mitigate financial distress, implementing emergency financial assistance programs or low-interest credit facilities could help farmers cover input costs for the next planting season. Furthermore, facilitating alternative distribution channels, such as direct farmer-to-market sales or bulk procurement by cooperatives, can help secure better prices and reduce dependency on the limited number of wholesalers. Encouraging post-harvest storage solutions, such as ventilated warehouses or low-cost drying techniques, would also allow farmers to store onions longer, reducing pressure to sell at low prices. By addressing financial instability and improving market access, Myanmar’s onion farmers can minimize losses and sustain production in the long term.

Enhance Onion Export Competitiveness in Egypt

Egypt’s onion prices have declined due to strong domestic supply, with the 2025 harvest expected to reach 3 mmt, keeping prices low despite rising export demand from Europe and Africa. Egypt should improve onion quality and expand market access to maximize export opportunities and stabilize farmer incomes. Implementing post-harvest processing techniques such as curing, drying, and better packaging will enhance onion shelf life and reduce spoilage, making Egyptian onions more competitive in international markets. Moreover, negotiating preferential trade agreements or reducing logistical bottlenecks, such as port delays and transportation inefficiencies, can improve export competitiveness. Establishing partnerships with key buyers, particularly in France and Germany, where onion production is declining, will further support higher export volumes.

Sources: Tridge, BNI Online, Korea Joongang Daily, Reuters, Telegraph India