Indian Economy News

The centre will purchase 1,650 tonnes of onions for exports to Bangladesh.

  • IBEF
  • March 19, 2024

The National Cooperative Export Ltd (NCEL), India's export agency, plans to procure 1,650 tonnes of onions from private traders at Rs. 29/kg for export to Bangladesh. This marks India's first official onion export in over three months, following a government-imposed export ban from December 8 to March 31 aimed at curbing soaring domestic prices and ensuring local availability. The government's decision to allow exports comes after allocating 64,400 tonnes of onions for export, with 50,000 tonnes allotted to Bangladesh and 14,400 tonnes to the UAE, addressing concerns over affordability and availability while anticipating a decline in onion prices due to the arrival of fresh rabi harvest in Maharashtra's Nashik district.

Onion exporters, noting the prevalence of smuggling activities, remain cautiously optimistic about the market conditions. With wholesale onion prices currently ranging from Rs. 7/kg to Rs. 16/kg in Nashik, Maharashtra, the profitability of onion exports to Bangladesh, where prices are significantly higher at Rs. 80-90/kg appears promising. India's traditional dominance in the global onion market from January to March is expected to face competition this year from new crops from Egypt and Turkey in May, which could alleviate global shortages. Despite challenges, India exported 975,000 tonnes of onions between April 1, 2023, and August 4, 2023, with Bangladesh, Malaysia, and the UAE emerging as the top importing countries in terms of value.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.