Indian govt to procure 1,650 tonnes of onions for Bangladesh export
According to industry sources, National Cooperative Export Ltd (NCEL), the export agency of the Indian government, is set to purchase 1,650 tonnes of onions from private traders at a rate of ₹29/kg for export to Bangladesh.
This marks the first official export of onions from India in over three months, following the country's export ban from 8 December to 31 March, reports The Economic Times.
Government officials in India stated that in the first week of March, the Centre permitted the export of 64,400 tonnes of onions to countries that had made requests through diplomatic channels.
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The Indian government's decision to ban onion exports, aimed at stabilizing escalating domestic prices, resulted in a significant drop in local prices. Additionally, it caused a notable surge in international prices due to the absence of Indian onions, contributing to a worldwide shortage.
Demand from India's traditional buyers like Bangladesh, the Middle East and some countries from Southeast Asia is at its peak during the ongoing Ramadan season.
Onion exporters had recently written to the Centre claiming that huge quantities of onions - more than 50% of trade during normal times - were smuggled out of the country since the export ban.
Currently, onion prices in the wholesale markets of Maharashtra's Nashik district are ruling between ₹7/kg to ₹16/kg.
Prices may soften further with the steady arrival of fresh rabi harvest.
The price NCEL will charge onion buyers in Bangladesh could not be ascertained.
Industry insiders say the export agency is expected to make considerable profits as onions are currently selling at ₹80-90/kg in Bangladesh.
"Farmers and private trade could not benefit from the high international prices," said a Nashik-based industry veteran, requesting not to be named.
"India has an upper hand in the global market from January to March. The global shortages of onions will end from May as the new crop from Egypt and Turkey will begin," said Ajit Shah, president of, the Horticulture Export Promotion Council (HEPA).
