India's onion exports picked up in December after Bangladesh resumed purchases following a three-month suspension. The ban had been introduced by the Bangladeshi authorities to support domestic producers, but was lifted as local prices increased.
According to market sources, exporters in India had accumulated around 30,000 metric tons of onions at the India–Bangladesh border by the end of November, based on expectations that imports would restart. When the resumption did not take place, exporters were forced to divert volumes to the domestic market as stored onions began to deteriorate.
Industry participants said that if the stockpiled onions had been exported, prices were expected to reach about INR 22 per kg, equivalent to around US$0.24 per kg. Instead, with the ban still in place, exporters were reportedly selling onions locally at prices as low as INR 2 per kg, or about US$0.02 per kg.
© Mintec/Expana
With onion prices rising in Bangladesh, the Department of Agricultural Extension authorised the resumption of imports from India on December 13. The approval allows the issuance of 200 import permits per day, with each permit covering a maximum volume of 30 metric tons.
Wholesale onion prices in India responded to the reopening of the Bangladeshi market. Prices for wholesale onions of Indian origin stood at INR 2,270.04 per 100 kg on December 30, equivalent to about US$24.7 per 100 kg. This represented a month-on-month increase of 9.74 percent.
Despite the December recovery, prices remain under pressure on an annual basis. Wholesale prices were down 34.78 percent year on year following a challenging season for Indian growers. Market sources indicated that adverse weather, particularly heavy rainfall, affected crops during the season.
As a result, onion quality and shelf life have been reduced, increasing the need to move product more quickly through the supply chain. Traders noted that these quality constraints continue to influence marketing strategies as exporters seek to balance export opportunities with domestic market conditions.
Source: Mintec/Expana
