India's onion exports may slow down for short duration: Indian govt

India today said the pace of onion exports from the country may slow down for a short duration primarily because of the availability of fresh crops from Pakistan and China at competitive rates in key overseas markets, including the Gulf countries, Sri Lanka and the Far East.

As of now, onion exports are normal, with about 1.50 lakh tonnes exported during June 2026, the Ministry of Consumer Affairs, Food and Public Distribution said.

"However, traders expect that the pace of onion exports may slow down for a short duration primarily because fresh crops from Pakistan and China are available at competitive rates in key export destinations such as the Gulf countries, Sri Lanka and the Far East," it said in a statement.

The Indian government has increased the procurement price of onions for the price stabilisation buffer by 13%, from Rs 1,875 per quintal to Rs 2,125 per quintal. The revised procurement price is effective from 4 July 2026.

The revised procurement price will ensure better returns for onion farmers while supporting buffer procurement efforts, the statement said.

As per the latest estimates of the Ministry of Agriculture for 2025–26, India's onion production is estimated at 307.37 lakh tonnes, against production of 307.67 tonnes in 2024–25.

However, going by the production estimates, the overall availability of onions is not a concern at this stage, though prices may be expected to inch up in line with normal price seasonality.

The current stock levels in key onion-growing states — Maharashtra, Madhya Pradesh and Gujarat — are adequate and there are no indications at present of any shortage of stored onions, the statement said.

Daily wholesale market arrivals nationally remain at over 50,000 tonnes, while arrivals in Maharashtra are over 30,000 tonnes. Better-quality stocks continue to remain in storage and are expected to be released during the lean period.

The delay in monsoon arrival and lower-than-normal rainfall in some regions has led to speculative buying by a section of traders, though there is no significant demand at the prevailing price levels in major consuming centres.

Despite the sentiment in consumer markets, main production centres such as Nashik and parts of Madhya Pradesh are witnessing a tendency for speculative trading activity, largely on expectations of a future market recovery rather than on strong underlying demand.

While the Nashik region of Maharashtra has reported about a 15-day delay in Kharif sowing, the sowing progress in the Chitradurga and Challakere belt of Karnataka is estimated to be around 60% of normal.