Peeling Tears: Has West Asia Conflict Created An Onion Crisis For India’s Farmers

Last Updated:May 12, 2026, 16:47 IST

India's Onion Crisis: In many cases, prices have slipped to around Rs 1– Rs 4 per kg (or roughly Rs 300– Rs 1000 per quintal), making it unviable.

India’s onion market is under renewed stress, with farmers facing a sharp collapse in prices even as arrivals continue to flood mandis. While the core driver remains domestic supply cycles, disruptions linked to West Asia are adding an external shock through trade channels, intensifying an already fragile market situation. The pressure is now visible in both falling mandi rates and distress selling, with some farmers dumping produce as prices fail to even cover basic costs.

Are Export Disruptions To West Asia Worsening Onion Glut In India?

One of the biggest pressure points is the slowdown in onion exports to West Asia. Gulf countries have traditionally been a key and stable market for Indian onions, helping absorb surplus production and preventing sharp domestic price crashes. However, ongoing geopolitical tensions in the region have disrupted trade flows. In several cases, shipments have slowed or nearly stalled, reducing export demand at a critical time. This has left a larger share of India’s onion harvest within domestic markets, contributing to oversupply conditions and accelerating the price decline.

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Why Are Farmers Dumping Onions In Mandis?

With export demand weakening and fresh arrivals continuing in mandis, prices have come under severe pressure. Farmers in several producing states are reporting mandi rates crashing to extremely low levels- often falling below production, harvesting and transportation costs.

In many cases, prices have slipped to around Rs 1– Rs 4 per kg (or roughly Rs 300– Rs 1000 per quintal), making it unviable to even transport the produce to markets. As a result, distress selling has intensified. Farmers in regions such as Maharashtra and Madhya Pradesh are dumping onions in market yards or selling at throwaway prices simply to recover partial losses rather than bearing the full cost of unsold stock in an already saturated market.

Adding to the crisis, heat-related spoilage has damaged large quantities of stored onions, while high labour and transport costs further discourage farmers from taking produce to distant mandis.

Is Onion Crisis In India Only Because Of Global Conflict?

Not entirely. While West Asia-related disruptions are adding pressure, India’s onion market remains fundamentally driven by domestic factors such as seasonal production cycles, storage limitations, weather conditions and the timing of arrivals in key mandis.

A strong Rabi harvest has also contributed to oversupply this season, further pushing down prices. However, the loss of export demand has removed a crucial buffer that typically absorbs excess supply, making the domestic glut sharper and more painful for farmers than it would otherwise be.

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