The ongoing conflict in West Asia has significantly impacted India’s onion market, leading to a steep decline in export demand and a consequent drop in domestic prices. At Lasalgaon Agricultural Produce Market Committee in Nashik, a key reference point for onion prices nationwide, the current average price for onions stands at ₹1,051 per quintal, reflecting a sharp decrease.

The geopolitical instability, particularly affecting Gulf countries, has curtailed India’s onion exports as international buyers reduce orders amid the turmoil. Between April 2025 and January 2026, India exported approximately 1.283 million metric tons of onions, generating revenue of ₹2,970 crore. However, with exports to Gulf nations severely disrupted, the surplus stock has accumulated within the domestic market, exerting downward pressure on wholesale prices.

This excess supply, combined with logistical hurdles stemming from transportation and trade disruptions, has exacerbated the price decline. Domestic demand has also softened somewhat due to reduced purchases from bulk buyers, further straining the wholesale markets. In many regions, wholesale prices have fallen below the cost of production, resulting in substantial financial losses for farmers.

Onion growers, who treat the crop as a key source of income, are facing severe economic challenges. Many are unable to recoup their basic investments, forcing them to sell their produce at prices that do not cover costs. Industry representatives warn that if current conditions persist, farmers may encounter even deeper losses in the coming months.

Vikas Singh, Vice President of the Horticultural Producers and Exporters Association (HPEA), highlighted the urgent need for government intervention to support both exporters and farmers. He recommended that the Central government stabilize export policies and enhance incentives to encourage sustained overseas shipments. Singh also called for a minimum 7 percent transport subsidy, the development of modern storage facilities, and improvements in port and logistics infrastructure to mitigate supply chain challenges.

The situation underscores the broader economic repercussions of geopolitical conflicts on agricultural markets and stresses the importance of coordinated policy responses to protect vulnerable stakeholders within the sector.