1. Weekly News

Bangladesh

Bangladesh Launches ‘Onion at Home’ to Stabilize Prices Following Import Surge and Supply Volatility

In response to recent price volatility triggered by India’s September 14 export ban, the Trading Corporation of Bangladesh (TCB) has reduced onion prices to approximately USD 0.21 per kilogram (kg) under its new ‘Onion at Home’ initiative, launched in collaboration with 18 e-commerce platforms. Active in Dhaka, Chattogram, Tangail, Rajshahi, and Sirajganj, the program allows unlimited online purchases, lifting previous quantity caps to curb panic buying and stabilize the market. With Bangladesh’s annual onion demand between 2.2 and 2.5 million metric tons (mmt), imports surged to 1.1 mmt in 2024/25 from just 0.4 mmt in 2023/24 amid supply disruptions. Furthermore, the Minister of Commerce confirmed a national stock of 600 thousand metric tons (mt), reassuring consumers about availability. As of W23, 10 thousand mt of onions are distributed through digital platforms, with the program aiming to strengthen direct-to-home access. This government-led digital initiative marks a strategic shift in food supply chain management, reinforcing consumer access, price stability, and transparency in the face of external trade shocks.

Egypt

Egyptian Onion Exporters Enjoy Stable Season Amid Strong European Demand

As of W23, Egypt’s 2025 onion export season is progressing smoothly with ample supply, good quality, and steady international demand. Yellow onions are shipped to Russia, Poland, and Romania, while red onions are for the United Kingdom (UK), Netherlands, Spain, and Italy. A key trend this season is the rise in red onion exports to the Netherlands, especially small calibers, which are then re-exported to Germany to address local shortages. Exporters prefer using the Port of Rotterdam, offering faster transit (10–12 days) and fewer regulatory hurdles over direct shipments to Germany’s Port of Hamburg, which takes about 18 days and faces stricter import controls.

India

Climate Shocks and Falling Prices Devastate Maharashtra’s Onion Farmers Despite Record Cultivation

Since early May-25, pre-monsoon rains have battered key onion-growing regions across Maharashtra, compounding the distress of farmers already hit by falling prices. Thousands of acres were damaged in districts like Nashik, Dhule, Pune, Solapur, and Chhatrapati Sambhajinagar, with losses yet to be fully assessed as rains persist and official inspections are pending. President of the Maharashtra State Onion Producers Farmers Association (MSOPFA) noted that prices have slumped further, averaging just USD 13.43 per quintal in Lasalgaon as of May 20. Farmers who harvested before Mar-25 saw good yields, but from Apr-25 to May-25, harvests faced setbacks from extreme heat and unseasonal rains. Many lack proper storage, and field-stored produce has suffered the most. While onion cultivation reached a record 6.52 million hectares (ha) in 2024/25, up significantly from previous years, the President of MSOPFA warned that the combination of climate shocks and market volatility threatens farmers' livelihoods, even as Maharashtra continues to lead in onion production and export revenues.

Malaysia

Malaysia Targets USD 70.9M Savings Through Local Onion Cultivation Drive

Malaysia is targeting a significant reduction in onion import cost estimated at USD 70.94 million, by expanding domestic cultivation, with strong momentum from the Selangor Agricultural Development Corporation’s (PKPS) rose onion project. This initiative has delivered promising yields of around 4 tonnes per acre, prompting plans to distribute rose onion seeds to interested farmers by late 2025 or early 2026. In 2021, Malaysia imported 484,867 mt of onions valued at USD 213 million, primarily from India (57%), China (20%), and Pakistan (11%). The Agriculture and Food Security Minister emphasized that if Malaysia can produce even 30% of its national onion demand locally, it could significantly cut import expenses. Besides Selangor, Penang and Kelantan have also achieved encouraging results in onion farming, and research is underway to identify additional states suitable for large-scale cultivation. This effort forms part of a broader national strategy to enhance food security, reduce import dependence, and support local agricultural development.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W23 2024 to W23 2025) 

India

In W23, India's wholesale onion prices declined 12.50% week-on-week (WoW) to USD 0.14/kg from USD 0.16/kg. This is mainly due to a surge in supply from the Rabi (spring) harvest, which typically contributes around 60% of India's annual onion output. The arrival of large volumes into major wholesale markets like Lasalgaon and Pimpalgaon created a temporary glut, exerting high downward pressure on prices. Moreover, stable weather conditions during harvest allowed for uninterrupted procurement and transportation, further accelerating market arrivals. Reports also suggest weak domestic demand and limited export activity during the week, amplifying the price drop despite seasonal trends.

Mexico

In W23, Mexico's wholesale onion prices increased 5.56% WoW and 46.15% month-on-month (MoM) to USD 0.38/kg. This sharp rise was due to seasonal supply tightening, as harvest volumes in key producing states such as Zacatecas and Guanajuato were reduced by irregular rainfall in late May-25, delaying field operations and limiting fresh arrivals in major wholesale markets. Moreover, domestic consumption surged ahead of national holidays, and export demand to the United States (US) picked up, draining available stocks. With Mexico producing around 1.67 mmt of onions in 2024 and expecting modest growth in acreage through 2026, this temporary supply-demand imbalance triggered the observed price increases.

Egypt

In W23, Egypt’s wholesale onion prices rose 8.33% both WoW and year-on-year (YoY) to USD 0.13/kg. This increase was due to a temporary tightening of supply, as the spring harvest has begun but is not yet in full swing, causing a short-term lag in availability from major producing regions like Beheira and Menoufia. Although Egypt produces around 5 mmt of onions annually, only 26 thousand mt were exported in early 2025, meaning the bulk of production remains in the domestic market. Moreover, some farmers hold back stocks anticipating future price increases, limiting current market supply. Continued demand from local consumers and Gulf export markets has added upward pressure. Altogether, early-stage harvest delays, low export volumes, stock retention by farmers, and steady demand drove the recent wholesale price rise.

Spain

In W23, Spain’s wholesale onion prices declined by 3.17% WoW to USD 0.61/kg but remained significantly higher YoY, up 177.27% from USD 0.22/kg. This sharp annual increase stems primarily from a key production shortfall in 2024, driven by adverse weather conditions, particularly drought that severely reduced yields and tightened supply. Although onion acreage has expanded for the 2024/25 season, the market still faces the lingering effects of last year’s constraints, which continue to support elevated price levels. Moreover, rising input costs and persistent logistical challenges have added further upward pressure. Prices may stabilize if upcoming harvests improve supply and transportation hurdles ease, but strong demand and cost-related pressures could keep prices elevated in the medium term.

3. Actionable Recommendations

Diversify Sourcing to Manage Import Risk

Importers in Bangladesh, Malaysia, and the US should diversify their onion-sourcing portfolios to reduce overreliance on India, especially given India’s recurring export bans and climate-related disruptions. Countries like Egypt, Mexico, and China present viable alternatives with growing production and stable export capacity. For instance, Egypt’s red onion season is progressing well with steady exports to Europe, and Mexico’s supply is feeding strong demand in the US market despite weather constraints. Building partnerships with these origins can safeguard supply chains and ensure continuity during price or policy shocks.

Build and Expand Digital Distribution Channels

Governments and private sector actors should invest in or expand digital distribution platforms to strengthen consumer access and market transparency. Bangladesh’s ‘Onion at Home’ initiative, which offers subsidized prices through 18 e-commerce platforms, is a strong model. Removing purchase caps and improving last-mile delivery logistics have helped reduce panic buying and stabilize prices. Other countries experiencing price volatility or supply disruptions, such as India, where pre-monsoon rains and unseasonal weather have damaged crops. Egypt, where early harvest delays and stock hoarding have tightened supply, and Mexico, which is facing reduced harvest volumes due to irregular rainfall, could adopt similar approaches. Implementing or scaling digital delivery networks in these markets would enhance direct-to-consumer access, especially in urban centers while generating real-time consumption and inventory data for better forecasting and planning.

Support Climate-Resilient Onion Production

Countries like India and Malaysia should step up efforts to support climate-resilient onion cultivation. In India, farmers in Maharashtra experienced massive losses from erratic rains and a lack of proper storage. Investments in on-farm storage infrastructure, crop insurance, and adaptive irrigation techniques can mitigate such losses. Meanwhile, Malaysia’s rose onion project by PKPS has shown promising results, and accelerating seed distribution and farmer training in high-potential states (e.g., Penang, Kelantan) could significantly reduce import dependency. These efforts will stabilize domestic production and enhance food security and rural incomes.

Sources: Tridge, Deccan Herald, Fresh Plaza, Fruit Net, The Star