India’s export agency National Cooperative Export Ltd (NCEL) has announced plans to purchase 1,650 tonnes of onions from private traders at Rs 29/kg for export to Bangladesh, according to a report by The Economic Times (ET).
This move marks the first official export of onions from India in over three months, following the government's ban on exports from 8 December to 31 March, reports Business Standard.
In the first week of March, India permitted the export of 64,400 tonnes of onions to countries that had made formal requests through diplomatic channels. Of this quota, 50,000 tonnes were allocated to Bangladesh, with the remaining 14,400 tonnes going to the UAE.
India's export restrictions on onions were implemented to address surging domestic prices, which had led to concerns about affordability and availability. The ban also contributed to a spike in international prices due to reduced global supply, particularly during the peak demand period associated with Ramadan in traditional markets like Bangladesh, West Asia, and Southeast Asia.
Onion exporters highlighted the prevalence of smuggling activities, accounting for more than 50% of the trade volume during normal conditions since the imposition of the export ban.
India typically dominates the global onion market between the months of January to March. This year, however, the arrival of new crops from Egypt and Turkey in May is expected to alleviate global shortages.
Between 1 April 2023, and 4 August 2023, a total of 975,000 tonnes of onions were exported from India, with Bangladesh, Malaysia, and the UAE emerging as the top importing countries in terms of value.
