1. Weekly News

Bangladesh

Stable Onion Prices in Dhaka, Bangladesh

As winter deepens in Dhaka, Bangladesh, the fresh produce market witnesses fluctuating trends, with high-tech greenhouse growers playing a crucial role. While vegetable prices have seen some reductions, staple items like potatoes and onions show varied pricing dynamics. Onion prices stabilized, experiencing minor adjustments depending on size. New locally grown onions traded at USD 0.58 to 0.64 per kilogram (kg) in W2, indicating a relatively stable market equilibrium. Despite these fluctuations, the high-tech greenhouse sector remains vigilant, continuously monitoring supply and demand patterns to ensure optimal production and timely responses to market changes.

India

Maharashtra Onion Prices Face Sharp Decline

Onion prices in Maharashtra, India, have been steadily declining over the past few days, creating significant challenges for farmers in the state. After experiencing a sharp price increase just months ago, onion prices in W2 dropped by 20 to 25% within days, causing widespread discontent among producers. As the largest onion-producing state in India, Maharashtra is bearing the brunt of this price decline. Farmers could not secure prices covering their production costs in many markets and are selling red onions from the Kharif season, which cannot be stored like summer onions. This lack of storage options forces farmers to sell at prevailing market prices, regardless of profitability. The situation has worsened dramatically, with prices plunging by 21% week-on-week (WoW).

Adding to the concern is the substantial increase in onion cultivation in Bangladesh, which increased by nearly 30% year-on-year (YoY) in 2025. This surge in production is expected to reduce India's onion exports to Bangladesh in the coming months, further aggravating the downward pressure on prices. Farmers fear that with reduced export opportunities and increasing domestic supply, onion prices may continue to fall, deepening their financial struggles. This scenario highlights the urgent need for interventions to stabilize prices and protect farmers from unsustainable losses.

Maharashtra Farmers Protest 20% Export Duty on Onions

Led by the Maharashtra State Onion Producers Farmers' Association (MSOGA), farmers halted onion auctions at the Lasalgaon Agricultural Produce Market Committee on January 6, demanding the immediate removal of the 20% export duty on onions imposed by the central government. This protest, marked by slogans against the government's onion export policy, underscores farmers' challenges in securing fair prices amidst improving onion production in Maharashtra and across India. The MSOGA had previously submitted a representative to the Chief Minister during the Nagpur session, urging the cancellation of the export duty. However, no decisions were taken, further intensifying farmers' frustration. Farmers argue that the export duty, combined with increasing production costs, is pushing onion prices below their cost of production. They called on the central government to cancel the export duty to stabilize prices and ensure sustainable earnings for onion growers.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W2 2024 to W2 2025)

India

In W2, Indian onion prices stood at USD 0.23/kg, remaining unchanged WoW and YoY. Currently, there is some relief for the consumer as prices have stabilized. However, as onion prices have sharply declined in the past week, farmers struggle to recover production costs, especially with the central government imposing a 20% export duty on onion exports. Despite repeated demands from farmers and farming organizations to lift this duty, the government has yet to make any decision. As a result, exported onions are becoming more expensive internationally, and now, more onions are entering the market in large quantities. Around 20 to 25 thousand metric tons (mt) of onions are arriving in Nashik district's 15 key market committees daily, including Lasalgaon, further driving down prices.

Netherlands

In W2, Dutch onion prices decreased by 64.29% YoY to USD 0.15/kg, though they remained unchanged WoW. This significant decline is primarily due to increased production in the 2024/25 marketing year (MY). The North-western European Potato Growers (NEPG) forecasted that regional potato production would exceed the 22.7 million metric tons (mmt) from the 2023/24 season, driven by a 7% YoY increase in planted hectarage. This surge in production resulted in a market surplus, placing downward pressure on onion prices. Furthermore, favorable weather conditions during the harvest improved storage capabilities, further contributing to the ample supply. As a result, the combination of increased supply and stable demand led to the observed price decline.

Mexico

In W2, Mexico's onion prices decreased 17% WoW and 24.44% month-on-month (MoM), reaching USD 0.68/kg. This decline is mainly due to cold weather conditions affecting key onion-producing regions, such as Puebla and Guanajuato. The cold fronts have disrupted crop development and harvesting. Furthermore, the cold weather has delayed the onset of onion shipments, pushing the start of exports to mid-Feb-25. This supply constraint has further tightened the market.

Egypt

In W2, Egypt's onion prices decreased by 4.55% WoW, 22.22% MoM, and 50.88% YoY decline. This sharp price decrease is due to a significant increase in domestic production, driven by favorable weather conditions in key areas like the Nile Delta and Upper Egypt, resulting in higher yields and abundant supply. Moreover, the Egyptian government's initiatives to enhance market efficiency, reduce export restrictions, and improve logistical access have bolstered domestic availability. These factors combined to stabilize the market and exert downward pressure on prices, marking a substantial decline compared to last year.

Spain

In W2, Spanish onion prices surged 18.18% WoW and 23.81% MoM, reaching USD 0.26/kg. This significant price increase is primarily due to a substantial reduction in supply, as the Spanish onion harvest has concluded, leading to decreased market availability. Moreover, increased export demand has contributed to the upward pressure on prices. Ranking among the top global exporters of onions, Spain has seen a surge in international demand, particularly from countries facing adverse climate conditions affecting their local onion production. Furthermore, the start of the new planting season in Sep-24, with harvests expected by mid-Jan-25, has led to a transitional period where old stocks are depleted, and new produce is not yet fully available in the market. This gap between supply cycles often results in temporary price increases.

3. Actionable Recommendations

Implement Cold Storage Infrastructure in Maharashtra

India should build adequate cold storage facilities to address the issues of post-harvest losses and unstable onion prices. Farmers are forced to sell their onions immediately after harvest due to a lack of storage options, leading to price volatility and financial instability. Farmers can store excess produce during peak harvest seasons by investing in large-scale, modern cold storage infrastructure across key onion-producing regions. This storage can ensure the availability of onions throughout the year, helping to stabilize market supply and prevent abrupt price declines during periods of surplus.

Introduce Supportive Export Policies for Onions

As Bangladesh sees increasing onion production, the country needs to implement supportive export policies to stabilize domestic prices. The surge in local onion cultivation is putting downward pressure on Indian exports, exacerbating price declines in both countries. The Bangladesh government should negotiate trade agreements for controlled export volumes, ensuring farmers receive fair prices while promoting international trade. Moreover, establishing partnerships with neighboring countries such as India to develop cross-border onion markets could provide outlets for excess production, easing domestic supply burdens and maintaining price equilibrium.

Explore Diversified Marketing Channels for Onions

With Egypt experiencing surplus onion production, diversifying marketing channels can help stabilize prices by reaching broader and more stable markets. Farmers should explore digital platforms and agricultural cooperatives to tap into local and regional retail markets, markets, and wholesale traders in neighboring countries. Moreover, creating partnerships with food processing companies that require onions for products like sauces and snacks can provide an outlet for excess produce. Expanding to non-traditional export markets, such as Asia and the Middle East, where demand for fresh vegetables is growing, can further absorb surpluses and help maintain price stability in the domestic market.

Sources: Tridge, Fresh Plaza, Loksatta, Navbharatlive