1. Weekly News

Bangladesh

Bangladesh's Onion Market Remains Volatile Amid Rising Cultivation Costs

The Bangladesh onion price experienced volatility in 2024, with prices starting at USD 0.29 to 0.33 per kilogram (kg), peaking at USD 0.98 to 1.11/kg, and stabilizing at USD 0.45 to 0.49/kg in W1 2025. Farmers profited despite rising production costs of USD 0.15 to 0.21/kg, encouraging robust onion cultivation in areas like Kumarkhali Upazila and Kushtia. However, farmers face challenges due to a syndicate among dealers, limiting access to non-urea fertilizers during peak planting seasons. Some farmers report inflated fertilizer prices, adding to their difficulties. The Agriculture Extension Department aims to cultivate onions on 4,890 hectares (ha) in the 2024/25 season, with 2,560 ha planted. Anticipating profits, officials believe farmers will exceed this target, even as input costs/ha rise to approximately USD 1,238.

India

Unseasonal Rainfall Impact Onion Supply in Goa, Leading to Price Drops

Onion prices in Goa, India, significantly dropped in W1 2025. Wholesale prices are at USD 0.26/kg, while retail prices have fallen to USD 0.47/kg, down from USD 0.58 to 0.70/kg in previous weeks. Meanwhile, at the Goa State Horticultural Corporation Limited (GSHCL) outlets, onion prices stood at USD 0.47/kg. This is mainly due to the decline in the arrival of the second crop from Baramati, Nashik, and Pune, following a gap caused by unseasonal rainfall in Dec-24. Prices, which are traditionally high in winter, are expected to decrease further.

Shallot Prices Surged in India as Rains and Root Rot Impact Crops

Shallot prices surged in India's city markets due to reduced arrivals caused by heavy rains and root rot disease, severely damaging crops in key production areas like Perambalur. On January 3, wholesale prices reached USD 0.87 to 0.93/kg for top-quality onions, up from USD 0.58 to 0.70/kg before the rains. The wholesale market in the Perambalur supplies neighboring districts, including Tiruchi, Thanjavur, and Nagapattinam. According to the General Secretary of the Tiruchi Onion Commission Mandi Traders' Association, heavy rains in Dec-24 damaged 50 to 60% of the crop, reducing supply and increasing price.

Nigeria

Nigerian Onion Farmers Face Over 50% Post-Harvest Losses

The National Onion Producers, Processors, and Marketers Association of Nigeria (NOPPMAN) revealed that onion farmers face over 50% post-harvest losses due to escalating production costs, inadequate storage facilities, and climate-related challenges. High input costs, particularly for onion seedlings, limit farmers' production capacity. This is aggravated by the lack of preservation technology and inefficient transportation systems, with half of the harvest wasted due to delay. Climate challenges, such as erratic weather and prolonged rainy seasons, disrupt growing cycles, compounding the industry's difficulties. Inflation has further increased financial pressure on farmers, jeopardizing their operations and threatening food security. The association urged intervention from the government, financial institutions, and the private sector to address these issues, stabilize the onion industry, and safeguard Nigeria's food supply.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W1 2024 to W1 2025)

India

In W1, Indian onion prices decreased by 34.29% month-on-month (MoM) to USD 0.23/kg, down from approximately USD 0.35/kg in Dec-24. However, prices increased by 4.55% year-on-year (YoY) from USD 0.22/kg in W1 2024. The significant MoM decline is primarily due to the arrival of the new Kharif onion crop, which has increased supply in the market, leading to lower prices. Moreover, the Indian government's interventions, including onion sales from buffer stocks at subsidized rates, have influenced market prices. However, the slight YoY increase is due to rising input costs and inflation.

Netherlands

In W1, Dutch onion prices decreased by 7.14% week-on-week (WoW) to USD 0.15/kg. This increase is primarily due to a reduction in domestic supply as the peak harvest season concludes, leading to lower availability in the market. Moreover, increased export demand, particularly from neighboring countries and the Middle East, has exerted upward pressure on prices. Rising transportation costs and logistical challenges have further contributed to the price increase. Despite the weekly increase, prices declined 64.29% YoY. 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 surpass the 22.7 million metric ton (mmt) output from the 2023/24 season, driven by a 7% YoY increase in planted hectarage. This production boost led to a surplus in the market, exerting downward pressure on prices. Furthermore, favorable weather conditions during harvest improved storage prospects and contributed to the abundant supply. Consequently, the increased supply and stable demand resulted in the observed price decline.

Mexico

In W1, Mexico's onion prices increased 6.49% WoW, reaching USD 0.82/kg, up from USD 0.77/kg in W52 2024. This surge is largely attributed to cold weather conditions impacting key onion-producing regions, including regions like Puebla and Guanajuato. The cold fronts have disrupted crop development and harvesting, leading to a significant supply reduction. As a result, the limited onion availability has driven prices higher. 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, intensifying the price surge. Moreover, rising production costs, fueled by shortages of essential supplies like natural gas crucial for irrigation and other agricultural processes have worsened the situation.

Egypt

In W1, Egypt's onion prices remained unchanged WoW at USD 0.22/kg, but reflected a 29.03% MoM and 60.71% 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.

3. Actionable Recommendations

Strengthen Post-Harvest Infrastructure and Supply Chain Management

Nigeria and India should improve storage facilities and transportation infrastructure to address the high post-harvest losses. Farmers in these countries face losses exceeding 50% due to a lack of cold storage, inefficient transport systems, and insufficient preservation technology. In collaboration with the private sector, governments should invest in modern storage facilities equipped with cooling and ventilation systems to extend the shelf life of onions. Moreover, logistical improvements, such as better road networks and cold chain transportation, can ensure the timely and efficient movement of onions from farms to markets, reducing waste during transit. Training for farmers on best post-harvest handling practices can also help minimize losses, while financial incentives can encourage investments in preservation techniques. By strengthening the post-harvest supply chain, these regions can stabilize onion availability, mitigate price volatility, and improve overall market efficiency.

Promote Export Partnerships and Market Diversification

Mexico and Egypt should diversify export markets to help mitigate reliance on single regions and reduce price risks. Agricultural associations should pursue partnerships with new markets, including East African countries or Southeast Asian markets that are increasingly demanding fresh produce. Strengthening trade agreements and logistical capabilities can open up more stable and diverse export opportunities, ensuring consistent demand and stable price realization for onion farmers. Moreover, focusing on value-added exports, like processed onion products, can add more stability to the income streams.

Leverage Weather Forecast Tools for Crop Management

To combat the impact of unpredictable weather events, such as heavy rains in India or cold spells in Mexico, farmers in key onion-producing regions should adopt weather forecasting tools to make more informed decisions. Governments and agricultural organizations should promote the use of digital platforms and mobile apps that provide real-time weather updates and drought or flood alerts. This helps farmers adjust planting and harvesting schedules accordingly, saving crops from damage and improving timeliness in cultivation. Moreover, integrating weather insurance schemes could protect farmers against losses due to extreme weather conditions, thus stabilizing yields and income over time.

Sources: Tridge, Dhakatribune, News Able, La Prensa, The Hindu, Times of India, Small Business Insight