India to export 50,000 tonnes onions to Bangladesh

The Ministry of Commerce and Industry of India on Friday granted permission to export 50,000 tonnes of onions to Bangladesh.

The shipment will be sent to Bangladesh through the National Cooperative Exports Limited, an office order signed by India's Foreign Trade Director General Santosh Kumar Sarangi stated.

Confirming the information, Commerce Ministry Joint Secretary Md Abdus Samad Al Azad told TBS, "The standard operating procedure or modalities, such as the price and the export company that will send the onions, have not yet been finalised. We hope that this will be finalised soon and the imports will start."

Notably, onion prices have risen significantly this year compared to previous years.

According to the Trading Corporation of Bangladesh, consumer prices reached Tk120 per kilogram on 1 March, up from Tk35 on the same date last year.

The data stated that the current price of local onions is 171.43% higher than in the same period last year.

The onion market became volatile after the Indian authorities imposed a ban on onion exports. On 8 December 2023, India extended a ban on exports of onions until March 31 this year.

Prior to that, India imposed a minimum export price of $800 per tonne and 40% export duties for onions -- much higher than the prices at which importers were buying – on 28 October 2023 to curb export and increase domestic availability until December 2024.

The price of onions in Bangladesh surged by Tk20-25 per kg after India announced an extension of onion export restrictions.

After India's onion export ban the Tariff Commission recommended importing the item from alternative countries. But traders have been reluctant to go for the suggestion.

According to official data collected from Chattogram Port, 1,454 tonnes of onions were imported from China and Pakistan through the port in December and January.

In May 2022, the Bangladeshi government halted onion imports from India to support local farmers, leading to a spike in onion prices.

The annual production of onions in Bangladesh exceeds 3.5 million tonnes, with a demand of around 2.8 million tonnes. Despite high production, the country relies on imports due to significant wastage caused by storage and management complications, amounting to 25% or more of the total onion production.