India's onion exports to West Asia come to a halt amid escalating tensions

India’s onion exports to West Asia ground to a halt on Sunday after major ports across the region shut operations, forcing shipping lines to suspend vessel movements and leaving consignments stranded at origin.

The disruption comes at the peak Ramadan shipping window, when overseas demand surges about 30%, amplifying the risk of a domestic glut just as farmers in northern Maharashtra, the country’s key onion-growing and export hub, are protesting subdued prices. West Asia accounts for about 15% of India’s onion exports, making the sudden freeze a blow to traders and growers already grappling with weak realisations.

India's onion exports had plunged more than 50% in 2024-25 to about 1.15 million tonnes from the peak of 2.52 million tonnes in 2022-23. In the ongoing financial year, exports touched 1.13 million tonnes during April-December. At a time when export of onions to Bangladesh, which used to account for 45% of India's total onion exports, have fallen to negligible levels, the Ramadan demand from West Asia was helpful for the country’s onion growers.


“In recent weeks, India had become more competitive in the global market and had replaced most of the competing countries in our traditional markets," said Vikas Singh, vice president, Horticulture Produce Exporters' Association of India.

Now no containers are being loaded on the vessels in Mumbai, said exporters.

“Even if the ports reopen, the demand is not likely to be good as people may not step out or party for the festivities," said Ajit Shah, a Mumbai-based exporter of onions.

Many shipping lines have conveyed to the exporters the suspension of all vessel transit through the Strait of Hormuz and cautioned about the possibility of delays at ports in the Gulf.

Onion prices in the country have been ruling below the cost of production at about Rs 9-10 per kg. This has forced farmers to resort to agitation and demand relief measures from the Maharashtra government.

Meanwhile, onion prices in Dubai and other markets in West Asia have surged three-four times, which would benefit the traders whose goods had already landed at these destinations, said trade watchers.