The Horticulture Produce Exporters Association (HPEA) has written to the government, highlighting this could undermine overseas markets regained by India after previous export control measures.
While delayed kharif sowing this year due to erratic weather has pushed wholesale onion prices to around ₹20 per kg, retail prices remained stable at ₹20-25 per kg. The plea by exporters tracks a 40% rise in onion exports to around 1.5 million tonnes in 2025-26.
“The heatwaves and hailstorms have reduced production and affected the quality of stored onions,” said Vikas Singh, vice president at HPEA.
Average onion prices at the Lasalgaon APMC rose more than 42% between mid-May and mid-June.
Historically, the government has relied on export restrictions to stabilise domestic prices during the lean season between August and November. Exporters said however that such measures often backfire. An export ban imposed in 2023-24 had significantly impacted overseas shipments.
“Sudden export restrictions force overseas buyers to shift to competing nations such as Pakistan, Egypt, Turkey and China, making it difficult to regain those markets,” said Singh. “Data and market dynamics indicate that abrupt export bans depress prices, erode farmer incentives for future cultivation and damage India’s standing as a reliable global trade partner,” HPEA said in its letter. The robust increase in onion exports in 2025-26 came despite Bangladesh’s share in India’s total onion exports falling to 6% from about 40%. Onion prices are poised to stay elevated through October as stocks are estimated to be at historically tight levels.”As the government is procuring onions at ₹16 per kg, export-quality onions will naturally command a higher price,” said Ajit Shah, an onion exporter.
Onion farmers in Maharashtra had protested till May, demanding price-support measures after prices remained subdued. The Centre was forced to raise procurement prices multiple times. Despite the increases, farmer participation in the government’s procurement programme has remained lukewarm since open-market prices are higher than procurement rates.