India’s onion exports have picked up through sturdy demand from overseas, even as domestic prices continue to be low. Experts attribute the pick-up in demand over the past few months to a lower global output due to changing climatic conditions.
Ganpat Vaishnav, owner of Ganesh Impex, moved to exporting onions over the last three months, given the massive demand. “I kept getting huge orders from Malaysia and Dubai. Earlier, I used to only trade in the local market, but the crash in onion prices here was unsettling. Now, I am able to ship large quantities and can command a decent margin,” Vaishnav told BusinessLine.
In the local market, Ganesh Impex dealt with 50-60 tonnes of onion per day, and ended most days in the red due to fluctuating price. Now, on any given day, the company exports 100-150 tonnes, “especially to Dubai, Indonesia and Sri Lanka with demand rising every day,” he said.
It has bolstered hopes for many other traders, who have also taken to exports to keep their business from folding up. India is the world’s second-largest producer of onions, after China.