Recent reports reveal India’s plan to procure 1,650 tonnes of onions from private lenders at Rs 29 per kg for export to Bangladesh. The initiative, spearheaded by the National Cooperative Export Ltd (NCEL), marks the first official export of onions from India in over three months. This move follows the government’s ban on exports from December 8 to March 31.
While the exact selling price of onions to Bangladesh remains undisclosed, projections indicate substantial profits for the export agency. Currently, onions are priced at Rs 80-90 per kg in the Bangladeshi market.
In early March, the Indian government permitted the export of 64,400 tonnes of onions to countries that made formal requests through diplomatic channels. Bangladesh received the lion’s share, with 50,000 tonnes allocated to them, while the UAE received the remaining 14,400 tonnes. The export restrictions were imposed to address surging domestic prices, raising concerns about affordability and availability.
The ban led to a surge in international onion 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.
Reports have also highlighted a recent increase in onion smuggling activity. Smugglers procure onions from locations like Shillong, Guwahati, and other areas in Assam at Rs 40-50 per kg and sell them in Bangladesh for Rs 135-140 per kg.
According to data shared by the Border Security Force (BSF), there has been a significant rise in onion seizures. In January, the BSF intercepted and seized 2,776 kg of onions valued at Rs 10,19,120. The following month, this figure surged by over 288 per cent, with 10,780 kg of onions worth Rs 35,09,434 being seized.
India typically dominates the global onion market from January to March. Between April 1, 2023, and August 4, 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.
