Top 8 Onion Suppliers in India in Week 22 of 2025: Urgent Market Update Amid Policy Shifts and Supply Chain Changes

Introduction – Current State of Play: The Onion Sector in India

As of July 2025, India’s onion market stands at a pivotal moment. A flurry of governmental reforms, major supply chain upgrades, and extreme weather events have reshaped the landscape, creating both opportunities and challenges across the value chain.

The most dramatic change? The Indian government scrapped the long-standing 20% export duty on onions, effective April 1, 2025. This move was designed to help farmers earn better prices while ensuring affordability for consumers. The decision has triggered a surge in export demand, tightening domestic availability and putting upward pressure on prices.

Simultaneously, the government is rolling out refrigerated transport containers and regional stockholding centers—big moves aimed at solving the traditional issues of spoilage and uneven distribution. Meanwhile, extreme weather in Mahuva has devastated white onion crops, damaging over 60% of the stock and closing down local APMC markets.

With all these developments unfolding at once, businesses sourcing onions from India need to stay informed and agile. Whether you’re an importer, wholesaler, or food processor, the decisions you make today could impact your margins for the rest of the year.

Deep Dive – Breaking News: Critical Updates & Their Effects

1. Policy Changes: No More Export Duty

The Indian government’s decision to remove the 20% export duty on onions is a game-changer. It directly opens the gates for global buyers to access Indian onions at more competitive prices. The impact? A sharp uptick in exports, particularly to traditional buyers like Bangladesh, Sri Lanka, and the UAE.

This policy shift is expected to boost total onion exports to 1.8–2.2 million metric tonnes in 2025–26, up from approximately 1.5 million tonnes in 2024. For Indian exporters, this is a golden opportunity. For domestic buyers, it signals the need to prepare for tighter supply and possible price hikes.

2. Supply Chain Enhancements: Cold Chains & Stockholding

To counteract seasonal shortages and spoilage, the government is investing in:

Refrigerated Containers: Announced in March 2025, these trucks are designed to cut down wastage during long-distance transport, especially in hot weather.
Regional Stockholding Centers: Moving beyond Nashik, Maharashtra, new centers are being planned in Gujarat, Madhya Pradesh, and other key zones.

These changes aim to reduce the bottlenecks that traditionally plague the onion supply chain, especially during festive seasons or export booms.

3. Weather Woes: Storms Hit Mahuva

In May 2025, Mahuva—a major white onion hub—was battered by storms. The result? Over 60% of freshly harvested white onions were lost. The local APMC market was shut, and quality issues have been reported for available produce. This has already led to price spikes for white onions and may sustain high market prices through the next quarter.

4. Price Volatility: The New Normal

Prices have been swinging wildly. Wholesale rates in Nashik and Lasalgaon dropped to ₹10–₹12/kg in May (down 36% YoY) due to a bumper Rabi harvest. But the white onion shortage from Mahuva and export demand are driving retail prices back up to ₹20/kg and beyond.

According to trade sources, if monsoons underperform later this year, we could see another price peak like the record highs of late 2024.

5. Government Procurement for Price Control

To stabilize prices, the government is purchasing 0.3 million tonnes of onion for its buffer stock. This stock will be strategically released during high-demand periods, ensuring better price control. Agencies like Nafed and NCCF are executing the procurement in Nashik, Pune, and Ahmednagar.

Freshdi, a B2B platform for agri-commodities, reports that RFQ (Request for Quotation) volumes for onion have increased significantly since these announcements, showing heightened buyer activity.

Top 8 Verified Onion Suppliers in India in Week 22 of 2025

Based on supplier certifications, export performance, and positive feedback from Freshdi’s verified buyer network, here are the top 8 onion exporters currently excelling in the Indian market:

Aarambh Food Export – Known for high-quality dehydrated onions, this supplier caters to global food processors seeking long shelf-life products.
Hreem Impex – A top player in the fresh onion segment, with robust logistical capabilities and consistent grading standards.
Foreign Foods – Specializes in export-grade dehydrated onions, ideal for food service and industrial buyers.
Atlas Seair Exim – Offers a wide range of onion varieties with strong documentation and timely delivery, making them a favorite among Gulf-region importers.
Schwitz Biotech – A diversified exporter that handles bulk orders efficiently, including both red and white onions.
GALI EXPORT – Known for their efficient RFQ responses and well-packaged shipments.
ALANKAR EXIM – A reliable source for fresh onions with a growing client base in Southeast Asia.
Ratna Import and Export – Offers both domestic and export-grade onions, with strong presence in Gujarat and Maharashtra.
Emollient Exim Pvt. Ltd. – Focused on quality assurance, Emollient has gained a reputation for traceability and food safety compliance.
Rezora International – A rising star with a focus on innovation and packaging, appealing to premium retail buyers.

Dynamic Ranking Note: Rankings may change week to week. Platforms like Freshdi offer real-time updates and “Suppliers of the Month” badges based on performance metrics such as volume shipped, buyer reviews, and RFQ responsiveness.

Market Navigation – Strategic Responses to Today’s Onion Landscape in India

In light of these developments, companies sourcing onion from India need to rethink their strategies. Here’s how you can stay ahead:

1. Sourcing Diversification

With weather disruptions in Mahuva, buyers should hedge risks by diversifying their sourcing to include Nashik, Pune, and Madhya Pradesh—zones currently favored by government procurement programs.

2. Focus on Shelf-Stable Products

Dehydrated onions are gaining traction amid volatility. Their long shelf life and stable pricing make them a smart choice for food processors and exporters. Suppliers like Foreign Foods and Aarambh Food Export are leading this segment.

3. Use of Tech-Enabled Platforms

Platforms like Freshdi offer real-time RFQ alerts, verified supplier profiles, and insights into market shifts. This helps buyers act fast when prices move or new stock becomes available.

4. Monitor Monsoon Performance Closely

The 2025 monsoon will be a key factor. Poor rainfall could trigger another round of price hikes and supply shocks, especially for Rabi onions. Businesses should monitor IMD forecasts and plan accordingly.

5. Stay Aligned with Government Releases

Keep a close eye on buffer stock releases. These can create temporary dips in prices, offering purchase windows for bulk buyers.

Conclusion – Key Takeaways for Businesses in a Rapidly Evolving Market

India’s onion market is undergoing rapid transformation. From major policy shifts like the removal of export duties to supply chain breakthroughs such as cold transport systems, the industry is pivoting toward more stability and scale.

But the risks are equally real—weather disruptions, price swings, and regional production imbalances can catch the unprepared off guard.

Checklist for Onion Buyers in 2025

✅ Diversify sourcing regions beyond Mahuva
✅ Lock in contracts with verified suppliers (see Freshdi’s top list)
✅ Monitor RFQ trends and market insights on Freshdi weekly
✅ Explore shelf-stable options like dehydrated onions
✅ Watch for government stock releases and monsoon forecasts

How Freshdi Empowers You

Freshdi isn’t just a directory. It’s an intelligence platform. From real-time RFQ tracking to supplier verification and weekly market insights, it arms you with everything you need to make fast, smart procurement decisions in a volatile market.

If you’re serious about staying ahead in the onion trade, Freshdi is your frontline toolkit.

FAQs

1. Why are onion prices in India so volatile right now?
Prices are fluctuating due to a mix of export demand, weather-related crop losses, and government policy shifts like the removal of export duties.

2. Which onion varieties are most affected by recent weather events?
White onions from Mahuva have been hit the hardest, with over 60% of the crop damaged due to storms in May 2025.

3. How often are supplier rankings updated on Freshdi?
Freshdi updates its supplier rankings weekly, based on real-time data such as RFQs, buyer feedback, and shipping performance.

4. What makes dehydrated onions a good buy now?
They offer longer shelf life and stable pricing, making them less vulnerable to market shocks compared to fresh onions.

5. How can I verify a supplier before placing a large order?
Platforms like Freshdi offer supplier verification, performance history, and buyer reviews to help you make confident decisions.