Centre to form stakeholder group as exporters raise alarm over onion market crisis
Onion exporters have urged the government to act swiftly as the sector faces mounting challenges
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KUMAR SS
The Government of India will facilitate the formation of a stakeholder group to tackle pre- and post-harvest onion storage challenges and explore delegations to new markets to help India regain its global share.
A delegation of onion exporters recently met Commerce Minister Piyush Goyal in New Delhi, along with officials from APEDA, to discuss the issues faced by exporters. According to one exporter, the minister acknowledged their concerns but expressed inability to raise RODTEP rates or provide transport subsidies due to WTO norms. He instructed APEDA to coordinate with the Agriculture Ministry and the Department of Consumer Affairs (DOCA) to resolve exporters’ issues.
Following the meeting, APEDA invited exporters for further discussions and assured that a stakeholder group would be formed to address storage-related challenges and identify new market opportunities for Indian onions.
Onion exporters have urged the government to act swiftly as the sector faces mounting challenges from climate disruptions and global competition.
Market challenges
During a meeting with Commerce Minister Piyush Goyal in New Delhi, the delegation highlighted that erratic weather over the past two years has caused severe pre- and post-harvest losses, eroding India’s market share in key destinations such as the UAE, Malaysia, Sri Lanka, and Bangladesh — now captured by Pakistan, China, Egypt, and Türkiye. Exporters warned that India’s weakening position in global onion trade could harm both farmers and the broader export ecosystem.
The discussions also covered issues such as export bans, government procurement and distribution interventions, and the resulting unfair prices received by farmers. Exporters called for immediate measures to address farmer distress from price crashes caused by oversupply.
Policy intervention
They stressed the need for scientific and policy interventions to mitigate climate risks and promote agri-inputs and techniques that enhance onion shelf life and quality. “Modern storage systems are critical to reduce nearly 40 per cent post-harvest loss. The creation of a modern storage network in major production zones, supported by incentives for private investment in high-capacity facilities, is essential,” said one delegation member.
Exporters also requested higher RODTEP rates and a transport subsidy to offset soaring freight costs, along with a stable and predictable export policy to restore buyer confidence in Indian onions.
Farmers’ demand
The Maharashtra State Onion Producers Farmers Association has urged the government not to interfere in the market to reduce onion prices ahead of the upcoming general elections in states such as Bihar.
Recently, the Association launched a “phone protest” — a coordinated campaign where farmers from various districts across Maharashtra directly called ministers and public representatives to express their grievances over falling onion prices and demand immediate relief measures.
As part of the protest, farmers have been contacting Members of Parliament, MLAs, state and Union ministers, as well as chief ministers and deputy chief ministers, seeking accountability and urgent action to address the sharp decline in onion prices.
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Published on October 30, 2025
