1. Weekly News

Argentina

Heavy Rains in Argentina Drive Up Onion Prices

Recent heavy rains in San Juan and across much of Argentina have triggered significant price hikes for fruits and vegetables. Excess water disrupted production and distribution, reducing supply and driving up prices. Onions doubled in price, rising from USD 0.47 per kilogram (kg) in Feb-25 to 0.94/kg in early Mar-25, following harvesting difficulties and accelerated deterioration, particularly in Jáchal.

India

India’s Lasalgaon APMC Urges Removal of 20% Onion Export Duty Amid Price Decline

The Lasalgaon Agricultural Produce Market Committee (APMC) Chairman has urged the central government to remove the 20% export duty on onions. A sharp increase in supply has pushed the average wholesale price down from USD 35.64 per quintal on February 14 to USD 25.29 on March 5, with further declines expected, potentially leading to farmer losses. Eliminating the duty would boost exports, drive demand, and stabilize prices. As the summer crop harvest continues, onion arrivals at Lasalgaon APMC are set to increase, adding further pressure on prices.

Spain

Spain’s Early Onion Production Declined by 10 to 12% YoY

Early onion planting in Spain concluded in Feb-25, and production declined by 10 to 12% year-on-year (YoY). The country’s top early onion-producing region, Andalusia, experienced a sharp drop of over 30%. Meanwhile, the area dedicated to medium-grain and late-season onions will remain similar to the 2024 season, with a slight decrease, according to the Castilla-La Mancha Onion Producers Association (PROCECAM). Despite the poor commercial performance of onions this season, the planting area for conservation onions has remained steady. Throughout the campaign, sales prices have largely failed to cover production costs.

Uruguay

Uruguay’s Onion Market Remained Stable in Early Mar-25

Uruguay’s onion market remained stable in early Mar-25, with a steady supply and flat prices, according to the latest report from the Metropolitan Agri-Food Unit (UAM). Medium-sized onions dominate the market, while large and higher-quality onions are reserved for winter storage. White onion prices ranged between USD 0.59 and 0.99/kg, while red onions ranged between USD 0.83 and 1.41/kg in W10. Onion cultivation in Uruguay runs from September to February, primarily focusing on white and red varieties.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W10 2024 to W10 2025)

India

In W10, reduced arrivals and government policies affecting market supply drove India’s onion prices up by 4.55% week-on-week (WoW) to USD 0.23/kg. In Feb-25, projections indicated a 19% YoY increase in India's onion production to 28.88 million metric tons (mmt), which caused prices to drop, bringing wholesale prices at Lasalgaon APMC down to USD 31.04 per quintal. However, prices rebounded by Mar-25 as daily arrivals in Maharashtra’s key market fell from 18 thousand metric tons (mt) in early Feb-25 to 14.5 thousand mt in Mar-25. Moreover, traders slowed sales, anticipating a revised 20% export duty, which further tightened supply and supported the price increase.

Netherlands

In W10, onion prices in the Netherlands climbed 6.25% WoW and 21.43% MoM to USD 0.17/kg. Organic onion prices remain high, while red onion shortages persist due to poor yields caused by excessive rainfall. Despite the current price stability, weak export demand and rising supply could cap any significant price recovery in the short term. However, localized price spikes may occur for red onions due to supply constraints, while organic onion prices will remain stable amid sustained demand.

Mexico

In W10, an oversupply driven by improved weather conditions in key producing regions like Zacatecas and Guanajuato caused Mexico's onion prices to drop significantly to USD 0.35/kg from USD 0.46/kg in W9. This marked a 23.91% WoW and 32.69% month-on-month (MoM) decline. Favorable conditions boosted onion yields by an estimated 6 to 8% compared to the previous season, increasing overall production and stock levels. Moreover, a 4% decline in export orders to key markets in Feb-25 further contributed to the surplus, intensifying downward pressure on domestic prices.

Egypt

In W10, Egypt’s onion prices fell to USD 0.17/kg due to a strong local supply driven by favorable weather conditions in key regions like the Nile Delta and Upper Egypt. This marked a 5.56% WoW and 15% MoM decline. A global shortage in the 2024 season led farmers to expand acreage, further pressuring prices. While the 2025 harvest will match the 3 mmt produced in 2024, steady local demand at 1.2 mmt suggests continued high supply levels. Although export demand from Europe and Africa will increase, short-term price fluctuations should remain minimal. Stable yellow onion yields will help maintain supply levels and support overall price stability.

Spain

In W10, Spain's onion prices declined 2.94% WoW to USD 0.33/kg due to increased supply from ongoing harvests in key producing regions such as Castilla-La Mancha and Andalusia. Favorable weather conditions in Feb-25 and early Mar-25 led to improved yields, allowing farmers to harvest larger volumes, which added to market availability. Furthermore, lower export demand, particularly from European buyers, contributed to downward price pressure as competing suppliers, including France and the Netherlands, offered more competitive prices.

3. Actionable Recommendations

Enhance Onion Export Competitiveness in India

With ongoing volatility in India's onion prices, exporters should diversify beyond traditional markets. Strengthening trade agreements with Middle Eastern and Southeast Asian buyers can drive demand, mainly by lifting the 20% export duty. Moreover, improving storage infrastructure at key ports will help preserve quality, minimize losses, and ensure competitive pricing. Encouraging farmer cooperatives to participate in direct export contracts can further stabilize farm-gate prices and reduce dependence on fluctuating domestic markets.

Strengthen Supply Chain Resilience in Argentina

Recent heavy rains in Argentina have disrupted onion production and distribution, causing price spikes. To mitigate future supply chain shocks, investing in better drainage systems in flood-prone areas like Jáchal is crucial. Expanding controlled-atmosphere storage can help reduce post-harvest losses from excess moisture, ensuring better quality and availability. Developing alternative transportation routes and upgrading road infrastructure in key onion-growing regions will improve market access and stabilize prices.

Optimize Market Strategies for Mexico’s Onion Surplus

Mexico’s onion prices have fallen sharply due to oversupply from higher yields and reduced export demand. To manage surplus production, Mexican growers should explore partnerships with food processors to convert excess onions into dehydrated or powdered onion products, which have longer shelf life and stable demand. Furthermore, targeting new export markets, particularly in South America and the Caribbean, can help absorb excess supply. Encouraging staggered planting schedules and diversifying into specialty onion varieties (e.g., sweet onions) can also help balance production and demand, preventing future price collapses.

Sources: Tridge, Diariocambio, Fresh Plaza, NDTV, Panorama, Times of India