Onion prices crash amid bumper harvest; farmers hit hard despite export duty waiver

While growers face financial ruin, consumers are enjoying the low prices. “With such abundant supply, we are buying onions at rates we decide,” said Pradeep Sawant, a retailer. “We factor in wastage and still manage to sell them cheaper. Shoppers are buying in larger quantities now

NAVI MUMBAI: Onion prices have plummeted sharply in both wholesale and retail markets across Maharashtra, bringing relief to households but leaving farmers in distress. A bumper harvest this year has led to an oversupply, far outstripping demand and driving prices down to a fraction of what they were just months ago.

Navi Mumbai, India - May 19, 2025:Falling onion prices bring relief to homes, farmers suffer, export duty waiver too late at MIDC in Navi Mumbai, India, on Monday, May 19, 2025. (Photo by Bachchan Kumar/ HT PHOTO) (HT PHOTO)

In Vashi’s Agricultural Produce Market Committee (APMC), which supplies onions to the Mumbai Metropolitan Region (MMR), wholesale prices have dropped from ₹35- ₹40 per kg in February to just ₹7- ₹13 per kg in May. Retail prices have followed suit, falling from ₹45 per kg to about ₹25- ₹30 per kg, with some local markets offering them for even less.

According to traders, prices may continue to slide further due to continued heavy arrivals and lack of corresponding demand.

“Last year, farmers earned good prices for their onion crop, so they expanded cultivation this season expecting higher profits,” explained Ashok Karpe, a wholesaler at Vashi APMC. “But production has nearly doubled, and the market simply cannot absorb the volume. Today we received over 170 vehicles carrying onions, compared to the usual 90 to 100. The average nowadays is 100-150 vehicles every day.”

He added that recent unseasonal rain in rural Maharashtra has forced farmers to release their stored stock to prevent spoilage, further intensifying the glut. Major supplies are arriving from Nashik, Ahmednagar, Sangamner, and Pune.

Export challenges and policy delays

In order to help stabilise the market, the central government waived the 20% export duty on onions in April. However, farmers say the decision came too late. “The waiver should have come in January or February, when export orders were being finalised,” said Sachin More, a farmer from Nashik. “By April, countries had already sourced their onions from elsewhere, as our prices were too high to compete. Now, even covering production costs has become difficult.”

More pointed out that for farmers to break even, onions need to sell at ₹18- ₹20 per kg. “We’re being forced to sell at whatever price we can get just to avoid complete loss. Many of us are burdened with loans,” he said.

Export market shrinking

Industry representatives also raised concerns over India’s shrinking onion export markets. “We used to export around 35% of our onions to Bangladesh, but strained relations have disrupted this channel,” said Sanjay Pingle, president of the Kanda-Batata Aadat Vyapari Sangh at APMC. “The recent geopolitical tensions with Pakistan have also hurt trade prospects.”

Pingle stressed the need for a stable and proactive export policy. “The government must incentivise exporters to keep the market viable. A dedicated committee should be formed to draft a long-term onion export strategy that safeguards farmer interests.”

Consumers reap the benefits

While growers face financial ruin, consumers are enjoying the low prices. “With such abundant supply, we are buying onions at rates we decide,” said Pradeep Sawant, a retailer. “We factor in wastage and still manage to sell them cheaper. Shoppers are buying in larger quantities now.”