“India’s onion exports revive after policy-induced slump”

By Pune Media On Sep 3, 2025

India’s onion export season is off to a promising start, with healthy demand from Southeast Asia and the domestic market compared to the previous year, says Shvam Dhumal, Director at fresh produce exporter Agroindi EXIM Pvt Ltd. “A sharp rebound in onion production in major growing states has reset the current export outlook, with strong demand from Southeast Asia, while volumes to Gulf nations are slightly lower.”

Dhumal attributes the drop in export demand to policy interventions aimed at addressing domestic production and supply challenges. “Since 2023, weather and water scarcity challenges in major onion growing regions across India reduced national yields by 25–40%, prompting the Indian government to impose a 40% export duty in August 2023 for stabilizing domestic supply. This year, farmers in Maharashtra, Madhya Pradesh, Karnataka, Gujarat, and Rajasthan achieved near-full yields, leading to the duty’s removal in April 2025 and consequent revival of international trade.”

Export values reflect the impact of policy interventions. “From USD 321.04 million in 2020–21, exports peaked at USD 513.41 million in 2022–23. However, duties caused a drop to USD 36.39 million in 2023-24, declining further to USD 25.21 million in 2024–25. Without restrictions, exports could have exceeded USD 625 million in 2024–25,” Dhumal estimates, noting competitors in overseas markets gaining market share.

“Current exports center around the pink ‘Garwa’ onion, prized for its spicy flavor, aroma, and water content, making it especially popular in Gulf, South, and Southeast Asian markets,” Dhumal mentions. Harvested at its peak in March and April, the pink onion sustains supply until early winter. “Meanwhile, red onion season has just begun in Karnataka, with Maharashtra and Rajasthan set to follow, ensuring heavy availability in the coming months.”

Looking ahead, Agroindi EXIM plans to expand its presence in Southeast and South Asian markets, including Malaysia, Vietnam, Sri Lanka, Singapore, Indonesia, and the Philippines. “We are also introducing processed products such as dehydrated onion powder, flakes, and frozen onions to ensure extended shelf life and quality for long-distance shipping to Europe and the USA, ” Dhumal concludes.

For more information:
Shvam Dhumal
Agroindi EXIM Pvt Ltd
Tel: +91 91 12 200 621
Email: [email protected]
www.agroindi.in

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