India allows onions exports to Bangladesh, 5 other countries

The Indian government has authorised the export of 99,150 tonnes of onions to Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

The decision was announced by the country's Ministry of Consumer Affairs, Food & Public Distribution today.

The Indian daily, The Economic Times, said the decision stemmed from lower estimated monsoon and winter crops in 2023-24 compared to the previous year, along with heightened international demand.

The onions will be sourced from domestic producers.

Maharashtra, being the largest onion producer in India, will be a major supplier of onions for export.

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

According to the Trading Corporation of Bangladesh, onion 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 31 March 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.

On 1 March, India announced that it would export 50,000 tonnes of onions to Bangladesh.

By that time, the price of onions in Bangladesh surged dramatically, jumping from Tk35 per kg to Tk80. As locally produced onions entered the market, prices began to decline. Currently, the country is experiencing the peak season for onion production, with new onions readily available.

However, on 23 March, the Directorate General of Foreign Trade (DGFT) of India announced an indefinite suspension of onion exports.

The following day, Bangladesh State Minister for Commerce Ahsanul Islam Titu confirmed that onions promised by India had begun arriving in Bangladesh. The Trading Corporation of Bangladesh (TCB) is selling these onions at Tk40 per kg in major cities across the country.

On 31 March, 1,650 tonnes of onions arrived from India through the Darshana border and were distributed by the government through the TCB.

According to TCB data, fresh onions were sold at Tk58 to Tk60 per kg in various markets of the capital, Dhaka, today, compared to Tk60 to Tk65 per kg a week ago and Tk65 to Tk70 per kg a month ago.

According to the Department of Agricultural Marketing, the annual demand for onions in the country is 26.25 lakh tonnes, while domestic production stands at about 33 lakh tonnes. However, due to spoilage, 5 to 6 lakh tonnes of onions need to be imported annually.

The majority of onion imports into the country come from India.

According to data from the National Board of Revenue, 5.94 lakh tonnes of onions were imported into the country from last July to February 26. Prior to the export ban, around 5.88 lakh tonnes of onions were imported from India.

In addition to India, onions are also imported from Myanmar, Turkey, Pakistan, China, Egypt, and the Netherlands, although in smaller quantities. However, since the unrest in Myanmar, imports from the country have nearly ceased, approaching zero levels.