1. Weekly News

Argentina

Argentina’s 2025 Onion Exports to Brazil Plunge Amid Strong Local Supply and Currency Pressure

In 2025, Argentina's onion exports from Río Negro to Brazil declined sharply. The season ended early by May 31 due to strong domestic yields in Brazil that reduced import demand during the usual March to May peak. According to Río Negro’s Agriculture Secretary, favorable weather conditions in key Brazilian-producing regions like Santa Catarina, Minas Gerais, and São Paulo led to abundant local supply, limiting export opportunities. Moreover, the devaluation of the Brazilian real (BRL) diminished profitability for Argentine exporters. Total onion shipments from Río Negro reached 113,229 metric tons (mt) by the end of May-25, significantly below 2024 volumes, with average prices ranging between USD 0.27 to 0.38 per kilogram (kg), also lower year-on-year (YoY).

India

Maharashtra Forms High-Level Committee to Tackle Onion Sector Challenges

To address the long-standing challenges faced by onion farmers, consumers, and policymakers, the Maharashtra government has set up a dedicated committee led by the Chairman of the State Agricultural Prices Commission. Despite Maharashtra being India's top onion-producing state, growers struggle with volatile prices, inadequate storage infrastructure, and unpredictable export restrictions. The committee aims to provide long-term solutions by examining these structural issues and recommending policy reforms to stabilize the onion market and protect stakeholders across the supply chain.

India Tops Global Onion Production, Followed by China and Egypt

India leads global onion production with an annual output of approximately 26.7 million metric tons (mmt), thanks to its diverse agro-climatic zones that support year-round cultivation across key states like Maharashtra, Madhya Pradesh, and Karnataka. Indian onions serve both domestic needs and international markets. They are exported in fresh and processed forms, such as flakes, powder, and paste, primarily to Bangladesh, Malaysia, and the Middle East.China ranks second, producing around 23.5 mmt annually in provinces like Shandong, Henan, and Inner Mongolia, with onions widely used in traditional cuisine and food processing. Egypt is the third-largest producer, yielding about 3.3 mmt per year. Its dry climate and reliable irrigation help extend the shelf life of onions, making Egyptian varieties competitive in export markets across Europe and Africa.

Philippines

Philippines Launches First Cold Storage Facility for Onions in Bacolor to Curb Post-Harvest Losses

The Philippines Department of Agriculture (DA) and the Bacolor municipal government inaugurated the town’s first cold storage facility for onions, benefiting Bacolor Onion Farmers Association members who cultivate over 60 hectares (ha) of onions and other high-value crops. With a capacity of 20 thousand bags, the facility aims to reduce post-harvest losses, extend shelf life, preserve quality, and boost farmers’ incomes. The DA Regional Executive Director highlighted the role of innovation and cooperation in sustaining agricultural development, urging collective responsibility for the project's success.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W24 2024 to W24 2025) 

India

In W24, India's wholesale onion prices rose by 14.29% week-on-week (WoW) to USD 0.16/kg from USD 0.14/kg, mainly due to tightening supply conditions. The late Rabi onion crop, which typically sustains the market during the off-season, is seeing reduced arrivals in key wholesale markets such as Lasalgaon and Nashik due to lower production and poor quality storability this season. According to the National Horticultural Research and Development Foundation (NHRDF), Rabi output will be 10 to 15% lower YoY due to inconsistent pre-monsoon weather, including unseasonal rains and high temperatures. Moreover, onion storage levels have declined, with traders and stockists holding back supplies in anticipation of better prices.

Egypt

In W24, Egypt’s wholesale onion prices remained unchanged WoW but increased 8.33% month-on-month (MoM) to USD 0.13/kg, driven by a temporary supply tightness. Although the spring harvest has started, it is not yet in full swing, creating a short-term gap in availability from key producing areas such as Beheira and Menoufia. Despite Egypt’s annual onion output of around 5 mmt, only 26 thousand mt were exported in early 2025, leaving most production for domestic use. Furthermore, some farmers are holding back stocks in anticipation of future price increases, further constraining supply. Steady demand from local consumers and Gulf export markets added to the upward pressure, with these combined factors pushing prices higher in the short term.

Spain

In W24, Spain’s wholesale onion prices declined by 3.28% WoW and 9.23% MoM to USD 0.59/kg, yet remained 195% higher YoY from USD 0.20/kg due to lingering effects of the severe 2024 production shortfall caused by drought. While the 2024/25 season saw an expansion in onion acreage, market supply remains constrained, keeping prices elevated. Rising input costs and ongoing logistical challenges have added further upward pressure. Although prices may stabilize if upcoming harvests improve supply and transportation conditions, persistent demand and cost-related factors could maintain high price levels in the medium term.

3. Actionable Recommendations

Accelerate Cold Storage Expansion in Key Producing Regions

Governments and private stakeholders in top-producing countries like India, Argentina, and the Philippines should invest in decentralized cold storage facilities to reduce post-harvest losses and improve farmer income stability. These should be equipped to handle large volumes of onions, especially during peak harvest periods. The success of Bacolor’s pilot facility in the Philippines offers a replicable model. By maintaining quality and extending shelf life, farmers can time their sales to more favorable market conditions, reducing distress selling during gluts.

Diversify Export Destinations to Reduce Market Dependency

Traditionally reliant on Brazil as a key market, Argentine exporters are now facing reduced demand due to strong domestic yields and currency shifts in Brazil. To mitigate this risk, Argentina should pursue market diversification strategies by exploring under-served or emerging markets such as West Africa, Southeast Asia, and the Middle East. Trade promotion bodies can support this effort by organizing targeted trade missions, streamlining export protocols, and launching promotional campaigns that showcase Argentina’s varietal strengths. Diversifying export destinations will enhance resilience and reduce vulnerability to fluctuations in any single market.

Implement Seasonal Price Stabilization Programs Backed by Strategic Stockpiling

State governments like Maharashtra should pair structural reforms with seasonal price stabilization programs to address India’s recurrent onion price volatility. These could involve government-backed buffer stock procurement during harvest peaks and strategic market releases during lean periods. In addition, farmer cooperatives should be trained to use digital platforms for real-time price discovery and coordinated supply release. This dual approach can prevent oversupply-induced crashes and shortage-driven price spikes, ensuring fair returns for growers and stable prices.

Sources: Tridge, Fresh Plaza, Jagran Josh