India’s onion export season is off to a promising start, driven by robust demand from Southeast Asia and a recovering domestic market, according to Shvam Dhumal, Director at fresh produce exporter Agroindi EXIM Pvt Ltd.
“A sharp rebound in onion production across major growing states has reset the export outlook,” Dhumal said, noting that while volumes to Gulf nations remain slightly lower, Southeast Asian markets are witnessing strong interest.
The export rebound follows two challenging years. Between 2023 and 2024, adverse weather and water scarcity cut national yields by 25–40%, prompting the Indian government to impose a 40% export duty in August 2023 to stabilize domestic supply. With farmers in Maharashtra, Madhya Pradesh, Karnataka, Gujarat, and Rajasthan achieving near-full yields this year, the export duty was lifted in April 2025, reviving international trade.
Export values reflect these policy shifts. Exports rose from USD 321.04 million in 2020–21 to USD 513.41 million in 2022–23, before falling sharply to USD 36.39 million in 2023–24 and USD 25.21 million in 2024–25 due to duties. Dhumal estimates that, without restrictions, exports could have exceeded USD 625 million in 2024–25, noting that international competitors gained market share during the downturn.
Currently, exports focus on the pink ‘Garwa’ onion, prized for its spicy flavor, aroma, and high water content, which is especially popular in Gulf, South, and Southeast Asian markets. Harvested in March and April, the pink onion’s supply extends through early winter. Red onion season has begun in Karnataka, with Maharashtra and Rajasthan following, ensuring substantial availability in the coming months.
Looking ahead, Agroindi EXIM plans to strengthen its footprint in Southeast and South Asia, targeting markets such as Malaysia, Vietnam, Sri Lanka, Singapore, Indonesia, and the Philippines. The company is also introducing processed products like dehydrated onion powder, flakes, and frozen onions to enhance shelf life and quality for long-distance shipments to Europe and the USA.