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Export duty makes Indian onion prices higher than other origins

"Nearby countries are completely dependent on Indian onions"

Despite the export of onions from India having an extra duty tacked on, demand for the onions is still rather good, says Sagar Tikyani, owner of Indian onion exporter Dilip Agro: "Indian onion exports have been impacted by the to a 40% export duty on FOB, imposed by the Indian government. However, the demand in nearby countries is still quite strong, so the trade hasn't been impacted as much, because these nearby countries are completely dependent on Indian onions."

The added export duty means prices for Indian onions are higher than the alternatives, like Pakistani onions. However, according to Tikyani the Indian onions still stand out in the market. "The prices as of now are hovering around 550 US dollars FOB, which is uncompetitive compared to other countries like Pakistan, which are offering their onions at around 300-320 USD FOB. Fortunately, Indian onions have their own unique quality, which remains unmatchable by all the competing markets that surround us."

According to Tikyani, the total onion crop is expected to be slightly lower this season: "When looking at the volumes, this year the surveys are saying that about a 10 to 15 per cent drop in the crop is expected. This means it's going to be interesting to see what lies ahead, as we approach towards the end of the pink variety season in October. In terms of quality, our company is sending top-notch quality to our international buyers. And the cargo is arriving at the destination ports in a good state, as expected."

"We're targeting a volume of 250 containers this year, which looks achievable as of now. However, it's still too early to say for sure, as we have a complete year pending. We're currently shipping our onions to countries like Sri Lanka and the United Arab Emirates. This year, our company is aiming to export more onions to Gulf nations, like Saudi Arabia and Oman. We look forward for a great year ahead," Tikyani concludes.

For more information:
Sagar Tikyani
Dilip Agro
Tel: +91 704 584 2844
Email: [email protected]