Bangladesh begins importing more onions from India

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Bangladesh has begun importing more onions from India, particularly from the South, after the Indian Government reduced the export duty on the bulb to 20 per cent.

“At least 30-40 truckloads (20-25 tonnes each) of onions are heading to Bangladesh every day from Bangalore. Onion consignments are also departing from Tadepalligudem in Andhra Pradesh,” said M Madan Prakash, President of Agricultural Commodities Exporters Association (ACEA). 

“This is regular demand. Bangladesh usually goes for new onions. It is picking arrivals from the new crop which have begun in southern India,” said Ajith Shah, President, Horticultural Crops Exporters Association (HCEA).

Duty cut

The development comes on the heels of the Indian government removing the $550 a tonne minimum export price (MEP) and halving the export duty from 40 per cent on September 15.

In December 2023, the government banned export of onions  after the kharif onion crop was affected by drought and prolonged dry period, particularly in Maharashtra. According to the Ministry of Agriculture and Farmers Welfare, onion production in the July 2023-June 24 crop year has been estimated at 24.21 million tonnes (mt) compared with 30.2 mt the previous year. 

However, the ban was removed on May 5 this year but a 40 per cent export duty was imposed, besides the $550/tonne MEP.

In August, Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution BL Verma told the Lok Sabha in a written reply that 2.60 lakh tonnes of onions were exported after the ban on shipments were lifted on May 5. 

Pak competitive

Bangladesh is particularly buying onions of 45 mm and below. Shah said the neighbouring country prefers such onions rather than those above 50 mm. 

Prakash said the 45 mm onions were available at ₹35,000-38,000 a tonne. “Smaller ones are available at ₹26,000-28,000 a tonne,” he said. 

“Export enquiries are only from Bangladesh. For other destinations, bigger onions are required and Pakistan is cheaper,” said Shah.

Onions above 50 mm are quoted at $600 per tonne by Pakistan, while India’s price is $800, he said.

Currently, the modal price (the rate at which most trades take place) is above ₹45,000 a tonne at Nashik agricultural produce marketing committee (APMC) yard, the hub of onion trade. Prices are at a 10-year high at this point in time.