The Horticulture Produce Exporters Association (HPEA) has urged the Indian government not to impose new export restrictions on onions, warning that such measures could undermine overseas markets that India has regained after a previous ban, according to the Economic Times.
Exporters' Appeal to the Government
The HPEA, in a letter to the government, highlighted that reimposing export curbs could jeopardize the market access India has worked to restore after the earlier control measures, the Economic Times reported. The plea comes as the government considers restrictions to stabilize domestic prices during the lean season between August and November. Exporters argued that such measures often backfire, citing the impact of an export ban imposed in 2023-24 that significantly reduced overseas shipments.
Price Trends and Production Challenges
According to the Economic Times, delayed kharif sowing this year due to erratic weather has pushed wholesale onion prices to around ₹20 per kg, while retail prices remained stable at ₹20-25 per kg. Average onion prices at the Lasalgaon APMC rose more than 42% between mid-May and mid-June. The production and quality of stored onions have been affected by heatwaves and hailstorms, said Vikas Singh, vice president at HPEA.
"The heatwaves and hailstorms have reduced production and affected the quality of stored onions," Vikas Singh, vice president at HPEA, told the Economic Times.
Export Performance and Previous Ban
Onion exports in 2025-26 rose 40% to around 1.5 million tonnes, the Economic Times reported. The previous export ban in 2023-24 had significantly impacted overseas shipments, and exporters fear a repeat could undo recent gains.
Farmer Protests and Procurement Issues
Onion farmers in Maharashtra protested until May demanding price-support measures after prices remained subdued. The Centre was forced to raise procurement prices multiple times. Despite the increases, farmer participation in the government's procurement programme has remained lukewarm since open-market prices are higher than procurement rates.
Price Data Summary
| Indicator | Value |
|---|---|
| Wholesale onion price (per kg) | ~₹20 |
| Retail onion price (per kg) | ₹20-25 |
| Price rise at Lasalgaon APMC (mid-May to mid-June 2026) | >42% |
| Onion exports in 2025-26 | ~1.5 million tonnes (40% rise) |
Sources:
