1. Weekly News

India

India Begins 2025/26 Onion Procurement to Stabilize Prices During Festive Season

India has begun onion procurement for the 2025/26 buffer stock under the Price Stabilisation Fund, aiming to stabilize prices during festive seasons amid increased production and declining mandi prices, particularly in Maharashtra and Madhya Pradesh. Led by the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation of India (NCCF), the government targets 300 thousand metric tons (mt) of onions, purchasing directly from farmers at market rates and storing them through cooperative societies and FPOs under CCTV-monitored facilities. Major procurement will occur in Nashik, with additional operations in Pune, Ahmednagar, and select regions of Madhya Pradesh and Gujarat.

Malaysia

Malaysia Pushes for Onion Self-Sufficiency with New Shallot Varieties Amid Import Dependence

Malaysia advances efforts to strengthen food security by boosting local onion cultivation, but achieving self-sufficiency will require sustained action. Malaysia has long relied on imported onions due to lower prices and limited domestic cultivation, with farmers favoring other crops. In 2022, Malaysia imported 687 thousand mt of onions worth USD 333.9 million. During India’s 2023 export ban, Malaysia had to source costlier onions from South Korea, Taiwan, and Japan, highlighting the country’s vulnerability. The Malaysian Agricultural Research and Development Institute (MARDI) has introduced three new shallot varieties, BAW-1, BAW-2, and BAW-3, developed from local and international genetic materials. These varieties are adapted to Malaysian soil and climate, offering potential for sustainable production.

Russia

Russia Boosts Onion Imports from Egypt, Eyes Broader Agri Trade

As of May 11, Russia increased its onion imports from Egypt to 13 thousand mt, a 1.7-fold rise compared to the 7,600 mt imported during the same period in 2024. During a meeting, the head of the Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) and Egypt's Deputy Minister of Agriculture and Land Reclamation discussed ways to expand mutual agricultural trade. Russia expressed strong interest in diversifying its imports of Egyptian fruits and vegetables, particularly those that do not grow well in its climate.

Tajikistan

Khatlon Expands Early-Season Exports with Over 450 mt of Produce Shipped to Regional Markets

The Khatlon region has exported over 250 mt of early-season agricultural products, including onions, cabbage, beets, and apricots to Russia, Kazakhstan, and Kyrgyzstan via 15 truck shipments, all meeting international market standards. In 2025, farmers in Khatlon planted onions across 9,400 hectares (ha), with expected yields of up to 40 mt/ha. Domestically, onion prices currently average around USD 0.29 per kilogram (kg). The region actively expands its export reach, targeting new South and East Asian markets. A second phase of exports is underway, with 12 additional trucks transporting over 200 mt of produce to foreign markets.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W19 2024 to W19 2025 

India

In W19, India’s onion prices remained unchanged week-on-week (WoW) at USD 0.14/kg. However, prices rose 7.69% month-on-month (MoM). This uptick is due to supply-side constraints and seasonal demand factors. Adverse weather, particularly unseasonal rainfall in key growing regions such as Maharashtra, Karnataka, and Madhya Pradesh, has delayed the harvesting of the current crop, leading to tighter domestic supply. These weather disruptions, reduced storage capacity, and transportation difficulties have caused significant delays in onion movement to wholesale markets, exacerbating the price pressure. Demand for onions has risen with the approaching summer season, especially from domestic consumers and processing units. The price hike is due to the dwindling stocks from previous harvests, which have intensified market concerns over future availability. Consequently, these factors have led to higher prices, especially in major onion-producing regions, with prices expected to remain elevated until the new harvest becomes more available in the coming months.

Netherlands

In W19, onion prices in the Netherlands declined slightly by 2.13% WoW, falling from USD 0.47/kg to USD 0.46/kg. This modest drop was mainly due to increased supply as harvest volumes improved and fresh stocks became more available. Moreover, subdued domestic demand and competition from other European producers put downward pressure on prices. Despite this weekly decline, prices remained relatively stable compared to previous weeks, indicating a balanced supply-demand situation in the Dutch onion market. However, YoY, prices surged sharply by 253.85%. This dramatic increase was driven by tight domestic supply and strong export demand. Heavy autumn rains during the 2023/24 season severely damaged harvests in key producing regions like Zeeland and Flevoland, reducing marketable stocks by nearly 25% below the five-year average.

Mexico

In W19, Mexico's onion prices surged by 28.57% WoW and 44% MoM to USD 0.36/kg, driven by a combination of seasonal supply constraints and increased demand. The onset of the new harvest season typically leads to lower prices. However, adverse weather conditions, such as droughts and heavy rains, affected onion yields in key producing regions like Chihuahua and Zacatecas. These weather disruptions have limited supply, pushing prices higher. Moreover, strong export demand, particularly from the United States (US), has further strained domestic availability, increasing prices. Despite these challenges, the quality of Mexico's onions remains high, and production will stabilize as the season progresses.

Egypt

Egypt's onion prices decreased by 7.69% WoW and MoM to USD 0.12/kg in W19, mainly due to overproduction and low demand. After a shortage in the 2024 season, many farmers expanded onion cultivation, pushing national production over 3 mmt, about 1 mmt more than last year. However, demand remained weak, especially from key export markets like Saudi Arabia. Moreover, the market was flooded with inexperienced exporters, some sending poor-quality shipments, which further depressed prices and contributed to market instability.

Spain

In W19, Spain's onion prices also declined 9.38% WoW and MoM to USD 0.58/kg. This decrease is due to increased production volumes and low demand in Europe. The onion cultivation area in Spain has grown by nearly 20% in 2025, leading to a significant increase in yields compared to the previous season. However, the lack of demand from export markets, attributed to high production levels in other European countries, has reduced prices. Furthermore, the medium-term storage onion harvest is underway in the Spanish region of Castile-La Mancha, which will soon start harvesting long-term storage onions. Although the product comes this year with better quality and better calibres than last year, the imbalance between supply and demand has caused prices to start falling. Furthermore, the increase in production in Spain and the rest of Europe has resulted in greater competition, contributing to the price decline.

3. Actionable Recommendations

Expand and Optimize Onion Storage and Supply Chain Infrastructure to Stabilize Prices

India’s onion market faces seasonal volatility, aggravated by unseasonal rains, delayed harvesting, and transportation bottlenecks, factors that drive supply shortages and price spikes. To better stabilize onion prices, the government and private sector should significantly invest in expanding cold storage and controlled atmosphere (CA) storage facilities, particularly in major producing regions like Maharashtra, Karnataka, and Madhya Pradesh. Increasing storage capacity would allow farmers to preserve harvested onions longer. This reduces distress sales during peak harvest and improves supply throughout the year. Moreover, enhancing transportation infrastructure and logistics coordination, such as better trucking services, cold chain-enabled transport, and improved market information systems, would ensure quicker and more efficient movement of onions to wholesale and retail markets. Digitizing the supply chain through farmer-to-market platforms can reduce post-harvest losses. Such infrastructure improvements will stabilize prices and enhance farmer incomes by reducing wastage and improving market access during surplus and deficit periods.

Promote Domestic Onion Cultivation Through Adoption of Climate-Adapted Varieties and Farmer Incentives

Malaysia’s reliance on imports makes its onion supply vulnerable to external shocks. To reduce this vulnerability and improve food security, Malaysia should continue to promote the cultivation of new, climate-adapted onion varieties like BAW-1, BAW-2, and BAW-3 developed by MARDI. However, realizing meaningful self-sufficiency requires sustained farmer engagement and economic incentives. Government programs could provide subsidies or low-interest loans for farmers transitioning to onion cultivation, alongside extension services to train farmers in best agronomic practices tailored to these new varieties. Pilot projects demonstrating profitability and production techniques would encourage wider adoption. Moreover, establishing farmer cooperatives and strengthening access to quality inputs (seeds, fertilizers, irrigation) would help create a robust domestic supply base. Over time, these efforts can shift farmer preferences toward onions, reduce import dependence, and cushion the country against global price shocks.

Improve Export Quality Control and Market Diversification to Address Price Pressures

Egypt and Spain are experiencing downward pressure on onion prices due to overproduction, quality issues, and weak demand in traditional export markets. To improve returns and stabilize prices, exporters and agricultural authorities in these countries should focus on quality control systems and broadening market access. Egypt, in particular, faces challenges from inexperienced exporters shipping poor-quality products, which harm its reputation and market stability. Strengthening phytosanitary inspections, implementing strict grading standards, and investing in packhouse modernization can raise product quality and build buyer confidence. Simultaneously, exploring new markets beyond traditional Gulf countries, such as South and Southeast Asia or Eastern Europe, can reduce overreliance on a few buyers and open new demand channels. In Spain, improved post-harvest handling and storage technology investments can extend shelf life and reduce market gluts during peak seasons. Coordinated marketing campaigns emphasizing quality and sustainability could differentiate Spanish onions in competitive European markets.

Sources: Tridge, Fresh Market Info, Fresh Plaza, The Sun