India's Onion Exports Ban Reflects High Prices In Neighboring Regions

22 December 2023

On December 8, 2023, India announced the ban on the exports of one of its highly demanded vegetables, onion. The export ban of India has created waves and repercussions in other countries that rely on Indian cargo filled with onions. The neighboring countries to India have been affected significantly, among these affected countries. The prices of vegetables have increased in the regions following India’s onion export ban, resulting in a shortage at the local vegetable markets.

 

India’s Onion Exports — By Kind

 

The exports of onions are of major importance from India to its neighboring countries and other importing countries. Two kinds of onions are exported by India to all its partner countries—Fresh or Chilled Onion (Subheading 070310) and Dried Onion; Whole, Cut, etc. (Subheading 071220).

 

 

 

India’s Onion Exports — By Partners

 

India’s top 10 partners for the exports of onions are—Bangladesh (26.7%), Malaysia (19.3%), the United Arab Emirates (13.1%), Sri Lanka (11.1%), Nepal (6.6%), Indonesia (4.6%), Qatar (3.4%), Vietnam (2.9%), Oman (2.3%), and Singapore (1.9%).

 

 

 

India’s Onion Exports — By Quarters

 

The quarterly exports of onions by India registered these values: $119 million in Q1-2022, followed by $115.4 million in Q2-2022, $149.4 million in Q3-2022, $138.7 million in Q4-2022, $172.3 million in Q1-2023, and $120.7 million in Q2-2023.

 

 

 

India’s Onion Exports — By Month

 

The onion exports by India in the monthly trends of 2023 registered these values: January ($63.7 million), February ($53.7 million), March ($54.7 million), April ($36.2 million), May ($31.5 million), June ($52.9 million), and July ($59 million).

 

 

 

Affected Neighbor Countries

 

The neighboring countries of India have been highly affected by India’s onion export ban decision. The vegetable market in neighboring countries importing Indian onions registered a spike in prices of onions domestically since the ban has been extended till March 31, 2024.

 

The below-shown data represents the value of exports for Indian onions shipped to the recently affected countries. These are the monthly trends of India’s onion exports to Bangladesh, Bhutan, Nepal, Maldives, and Sri Lanka for the ongoing year of 2023, as per availability.

 

 

In Bangladesh, the prices of imported onions increased from 90-110 Bangladeshi Taka to 160-170 Bangladeshi Taka. The local onion in Bangladesh registered a hike in price, increasing from 130 Bangladeshi Taka to 200 Bangladeshi Taka in a single day after the ban.

 

In Bhutan, the prices of onions in the local market were 50-70 Bhutanese Ngultrum. The authorities of Bhutan claimed that the hikes in prices have been further increased from 70-80 Bhutanese Ngultrum per kilogram range to 100 Bhutanese Ngultrum per kilogram.

 

In Nepal, the prices of onions have reached an almost all-time high value. The current price of onions in Nepal is 200 Nepalese Rupees per kilogram. In November 2019, Nepal registered an all-time high of 250 Nepalese Rupees per kilogram following India’s onion export ban.

 

In the Maldives, the prices of onions have increased from 200-350 Maldivian Rufiyaa for each sack of onions to 500 Maldivian Rufiyaa per sack. The reports suggest that in some places of the Maldives, the prices range from 800 Maldivian Rufiyaa to 900 Maldivian Rufiyaa per sack.

 

In Sri Lanka, the prices of onions in the local market have touched a price of nearly 300 Sri Lankan Rupees per kilogram. The ban on onion exports by India has been making waves in Sri Lanka with other countries, drawing criticism from traders, associates, and even local vendors.