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Argentina's National Institute of Agricultural Technology (INTA) organized the 26th Mercosur 2025 Onion Seminar on March 21 and 22 to discuss market trends, production techniques, and technological advancements. With over 70% of commercially grown onion varieties developed through INTA's genetic programs, Argentina remains self-sufficient in onion production, exporting around 30% of its yield. The seminar brought together industry stakeholders from multiple countries to explore innovations in fertilization, storage, and irrigation while expanding market opportunities beyond Mercosur.
Driven by technological advancements in the Guarapuava region, Paraná's onion production increased by 44% year-on-year (YoY) in the 2024/25 season, reaching 127,600 metric tons (mt)—the highest yield in a decade. Following weather-related declines in 2024 that led to higher imports, production recovery has renewed optimism for further expansion of planted areas. Brazil's onion imports surged by 92% in 2024, totaling 257,400 mt, with Paraná significantly increasing its purchases.
India has abolished its 20% export duty on onions, effective April 1, 2025, to support farmers amid falling prices. The government previously imposed and gradually reduced the duty to stabilize domestic supply. Recent data shows a 39% drop in wholesale onion prices, prompting concerns over farmer earnings. The policy shift is expected to boost exports and improve farm incomes while maintaining price stability for consumers.
Germany's onion import season began on March 20, with retailers expecting full product availability by Easter. Logistics challenges, including disruptions in shipping routes and longer transit times, have affected supply chains. High tariffs led to reduced onion imports from Tasmania and planned shipments from South Africa were canceled due to timing constraints. Imports from Chile are expected in mid-Apr-25, while New Zealand's harvest proceeded on schedule. Germany's domestic onion supply remains stable, with last year's strong harvest depleting quickly due to high demand. A smooth transition is expected for red onions, with Egypt set to begin shipments in late Apr-25.
Peru's National Agrarian Health Service (Senasa) is working to expand fresh onion exports to Panama, alongside potatoes and other Peruvian products. In a recent meeting with Panama's ambassador and diplomatic representatives, Senasa emphasized that this initiative will create new opportunities for small producers, enhancing market access and competitiveness.
In the Philippines, Bongabon's mayor has urged the government to halt onion imports during the harvest season, citing their negative impact on local prices and farmer profitability. He emphasized the need for an onion research institute to address soil and seed compatibility issues rather than investing in cold storage facilities. The mayor also raised concerns over armyworm infestations and insufficient support for Bongabon's 4,000 onion farmers, advocating for improved research to enhance production efficiency.
In South Korea, public concern has risen after Chinese-imported onions were found to contain pesticide residues exceeding safety limits. Recent inspections at Pyeongtaek Port revealed thiamethoxam levels four times higher than the permitted standard, rendering the onions unfit for import. Korea's Onion and Garlic Association (KOA) criticized the government for failing to ensure food safety while simultaneously introducing a tariff rate quota (TRQ) auction ahead of the domestic harvest. The association called for stricter inspections on all imported agricultural products to safeguard public health.
India's onion prices rose to USD 0.17 per kilogram (kg) in W13, reflecting a 6.25% week-on-week (WoW) increase but a 26.09% month-on-month (MoM) decline. The removal of the 20% export duty on April 1, 2025, follows a 39% drop in wholesale prices, aiming to boost farmer incomes by stimulating exports. While this policy may prevent further price declines in the short term, its impact on future prices depends on export demand and domestic supply. A surge in exports could support price recovery, but if supply remains high, domestic prices may stay subdued despite increased foreign demand.
Mexico's onion prices rose to USD 0.35/kg in W13, a 2.94% WoW increase but a sharp 60.67% YoY decline from USD 0.89/kg. The slight price increase likely reflects short-term fluctuations in supply chain activity, but overall weak market demand and delayed buyer purchases have kept prices low. Despite abundant supply in Angostura, Sinaloa, sluggish demand has pressured prices, raising concerns over spoilage and financial losses for farmers. If demand remains weak, further declines are possible, potentially discouraging future planting and tightening supply in upcoming seasons, which could drive long-term price increases.
Egypt's onion prices remained stable at USD 0.12/kg in W13, with no weekly change but a 29.41% MoM and 78.18% YoY increase. Favorable weather in key regions, including the Nile Delta and Upper Egypt, has supported strong production levels. Following the global onion shortage in 2024, expanded planting has maintained supply, with the 2025 harvest expected to reach 3 million metric tons (mmt), matching last year's levels. While local demand remains steady at 1.2 mmt, rising export interest from Europe and Africa is expected to absorb excess supply. However, with stable yellow onion yields, short-term price volatility is likely to remain minimal, though increased export activity could gradually push prices higher in the long term.
With Argentina exporting 30% of its onion production and seeking new markets beyond Mercosur, exporters should explore diversification opportunities in regions facing supply deficits, such as the Middle East and Southeast Asia. Strategic trade agreements and participation in international food expos could enhance market penetration. Additionally, adopting improved post-harvest handling and packaging solutions will ensure better product quality, aligning with the increasing global demand for high-standard agricultural imports.
India's removal of the 20% export duty on onions presents an opportunity for buyers in price-sensitive markets to secure cost-effective supplies. Importers should assess bulk purchasing opportunities before potential price rebounds. Meanwhile, onion producers in competing exporting nations—such as Egypt and Mexico—should monitor India's export surge and adjust pricing and logistics strategies to maintain competitiveness in key markets, including the Gulf and Southeast Asia.
Brazil’s increased onion imports in 2024 underscores the need for enhanced domestic production stability. Given Paraná's record 44% YoY output growth, policymakers and agribusiness stakeholders should support sustained expansion through incentives for improved irrigation, storage, and genetic advancements. Encouraging contract farming and cooperative models will also help mitigate future reliance on imports while stabilizing prices for domestic consumers.
Sources: Tridge, Agraria, AFL News, The Pinnacle Gazette, Fresh Plaza, Expo Agro, Argenpapa, MSN
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