India's onion exports to Bangladesh hit a wall as import permits dry up, putting pressure on domestic prices, says Kiran Gangurde of Indian onion exporter Matoshree Fresh Foods. "The Bangladeshi government has halted import permits to protect its domestic onion growers. With this suspension, Indian onion exports will slow down, and that will bring prices down in India too. For now, imports under permits already granted will continue until January 30th."
According to Gangurde, "Bangladesh has been a top market, but new permits are off the table for imports through key land routes like Hili, Ghojadanga, and Petrapole. Shipments with existing permits can still clear by late January, but anything new faces a halt. That stock will flood into India, ramping up local competition." He adds, "Red onions, now the focus after the pink variety wrapped up, have already slipped from USD 0.17 to 0.26 per kg last week to USD 0.16 to 0.22. Even a USD 0.05 drop per kg means a USD 1110 to 1390 loss per truckload." Gangurde forecasts further softening looks likely in the days ahead.
Currently, Nashik is seeing 15,000 to 20,000 tonnes of arrivals daily across each of its 15 markets, Gangurde shares. "Volumes will increase by mid-January as late weather impacted early seeds and pushed planting timelines ahead, delaying maturity." He also mentions exports to Vietnam and Indonesia remain limited due to Pakistan's counter competition and shrinking lucrative outlets.
© Matoshree Fresh Foods
Pakistan is adding to the pressure with aggressive pricing across Sri Lanka, Vietnam, Indonesia, Malaysia, and Gulf markets. "CIF Jebel Ali prices highlight this gap, with Pakistan at USD 250 per tonne against India's USD 293 per tonne. Despite Pakistan offering grade B onions, even India's premium quality seems expensive by comparison," Gangurde explains.
In the coming days, India's local markets will face excess supply as redirected Bangladesh volumes mix with fresh farmer arrivals, adding downward pressure on prices. Gangurde notes demand holds in Vietnam, Indonesia, Malaysia, and the Gulf, but only at levels Indian exporters aren't used to.
For now, exporters will continue to outmanoeuvre import bans, weather setbacks, and rival supply until the next crop brings relief. "Fresh arrivals of Garwa onions by March-April, which last until October-November, will ease things after red onion volumes begin to fade next month," Gangurde concludes.
For more information:
Kiran Gangurde
Matoshree Fresh Foods
Tel: +91 92 73 683 400
Email: [email protected]
