Onion Market Trends and Key Insights

The export ban on onions was repealed by the government on May 4, 2024, and exports are now permitted with a minimum export price (MEP) of USD 550 per MT and a 40% export tariff. As of July 31, 2024, 2.60 lakh tons of onions had been exported during the current fiscal year 2024–2025.

Additionally, the government purchased 4.68 lakh tons for the price stabilization buffer through NCCF and NAFED, primarily from Maharashtra. Onion producers have realized much greater prices this year compared to previous year (2023).

In Maharashtra, the average monthly mandi modal prices for onions from April to July 2024 ranged from Rs. 1,230 to Rs. 2,578 per quintal, compared to Rs. 693 to Rs. 1,205 per quintal during the same period in 2023. This year's average onion procurement price for the buffer was Rs. 2,833 per quintal, 64% more than the previous year's average of Rs. 1,724 per quintal.

State-wise Production of Onion during 2022-23 and 2023-24

Sources: Onion production is from Department of Agriculture & Farmers Welfare

The nation's onion production has significantly decreased, according to the Union Agriculture Ministry. According to the latest record, onion production dropped by 19.84% amounting to 242.15 lakh tones in the financial year, as compared to 2022-23 amounting of 302.08 lakh tones. This marks a continuous decline over the past two years, with production falling by 23.59 % since 2021-22 when it was 316.87 lakh tones.

The decrease in production has been notably severe in key onion-producing states. Maharashtra, the largest producer, experienced a 28 % decline, producing only 86.02 lakh tones in 2023-24 compared to 120.33 lakh tones in the previous year. Karnataka saw a dramatic 38 % reduction, with production falling from 26.65 lakh tones in 2022-23 to 16.38 lakh tones in 2023-24. Similarly, Madhya Pradesh reported a 20 % decrease, with production down to 41.66 lakh tones from 52.62 lakh tones last year.

Inappropriate agricultural methods, input costs for production, inadequate facilities for storing, restricted availability of better onion seeds, Exorbitant transportation costs and market price fluctuations. These are the main causes of decline in the onion production.

Country-wise export of Onion by India in Lakh Metric Tons 

Source: Trade Statistics, Ministry of Commerce and Industry

India is a net exporter of onion and earns income from the export. The net export value earned by India for each of the last three years were Rs.3,326.99 crore in 2021-22, Rs.4,525.91 crore in 2022-23 and Rs.3,513.22 crore in 2023-24.

Understanding India's daily market pricing is crucial. Farmers and traders might use it to learn about the day-to-day operations of the trade. Anyone may use Agreap, a digital bookkeeping and communication platform, to monitor daily market updates and buy or sell commodities at a reasonable price. Since Maharashtra is the state with the highest production, farmers take advantage of this and sell their produce straight to other states for a higher price without using human labor or conventional techniques.

Agreap is transforming modern agricultural practices by providing farmers and traders with a reliable, efficient and digital platform. With features such as bid management, inventory tracking, digital bookkeeping, and access to market data, it empowers users to manage their operations with ease and precision. By connecting farmers directly to buyers, Agreap not only improves trade outcomes but also bridges the technological divide in agriculture, making it a crucial tool for the future of farming. Let's utilize Agreap aap and digitize.