Exporters and farmers in Nashik, India’s onion hub, have heaved a sigh of relief as onion exports to Bangladesh have resumed. The export by road was halted due to violence triggered by political unrest in the neighboring country.

Traders reported that trucks carrying onions, which were stuck at the border, have started gaining entry, temporarily alleviating export disruptions. Many exporters who supply onions with guarantees from Bangladeshi banks faced delays as banks were closed. With the banking system back in operation, exporters expect a smooth resumption of onion and other agricultural exports.

“Except for the initial few days, the impact on onion exports to Bangladesh was minimal. Now that the borders have opened, onions and vegetables are moving through. Additionally, the low export volumes meant the market and prices were not significantly affected,” a Mumbai-based exporter told Businessline.

Some 70 to 80 trucks carrying onions were stranded due to the closure of the India-Bangladesh border on Monday afternoon. In response, traders temporarily halted new shipments to Bangladesh. Bangladesh is a major buyer of Indian onions, typically importing them with grapes, tomatoes, and other agricultural products sent by road.

Onion exports

Meanwhile, on Thursday, the Ministry of Consumer Affairs, Food, and Public Distribution informed the Lok Sabha that the government had lifted the onion export prohibition on May 4, 2024, allowing exports with a minimum export price (MEP) of $550 per tonne and an export duty of 40 per cent.

By July 31, 2024, 2.60 lakh tonnes of onions were exported for the current financial year 2024-25. The government procured 4.68 lakh tonnes, primarily from Maharashtra, through NCCF and NAFED for the price stabilisation buffer. Compared to last year (2023), onion farmers have seen much higher price realisations this year.

The average monthly mandi modal prices of onions (the rate at which most trades take place) in Maharashtra between April and July 2024 ranged from ₹1,230 to ₹2,578 per quintal, compared to ₹693 to ₹1,205 per quintal during the same period last year (2023). The average procurement price of onions for the buffer this year was ₹2,833 per quintal, 64 per cent higher than the procurement price of ₹1,724 per quintal last year.

India remains a net exporter of onions, generating significant revenue from exports. The net export value earned by India in the past three years was ₹3,326.99 crore in 2021-22, ₹4,525.91 crore in 2022-23, and ₹3,513.22 crore in 2023-24.

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