India allows onion exports to Bangladesh as prices ease at home
The government has permitted India’s first onion shipments in over three months after imposing an export ban in December. The National Cooperative Export Ltd (NCEL) will purchase 1,650 tonnes of onions domestically and supply them to Bangladesh.
In March, India allowed 64,000 tonnes of onion exports to countries requesting supplies via diplomatic channels. Of this, 50,000 tonnes were allocated to Bangladesh, while 14,400 to the UAE.
India had prohibited overseas onion sales to address spiraling domestic prices, raising concerns over affordability and availability. This also led to inflation in global prices due to reduced supplies during Ramadan for key importers like Bangladesh, West Asia, and Southeast Asia.
Demand is peaking from India’s traditional onion buyers, including Bangladesh, the Middle East, and Southeast Asian nations. Wholesale rates in Maharashtra’s Nashik are Rs 7-16/kg, likely to soften further with the arrival of the fresh Rabi crop.
However, it remains unclear what price NCEL will charge Bangladeshi purchasers. Deals could benefit exporters significantly as onions are presently fetching Rs 80-90/kg there, say industry sources.
With supplies resuming from India, prices may stabilize internationally while easing financial stress on consumers within the country grappling with high food costs.
