Indian Onion Exporters Facing a Major Downturn

Both countries are now sourcing onions from Pakistan and China, putting significant pressure on India’s market. According to a report by The Economic Times, India’s own policy decisions are largely responsible for this situation.
 

In an effort to control domestic prices, India imposed several export bans on onions, prompting importing countries to seek alternative suppliers. Moreover, rival countries are increasing their own production using Indian onion seeds, gradually becoming self-sufficient. This has put Indian farmers at a disadvantage in the global market.
 

Experts note that India previously exported nearly three-fourths of its onions to Bangladesh. But over the past eight months, Bangladesh has imported only small quantities, despite high local prices. Similarly, Saudi Arabia has bought very little from India for almost a year. Markets that once boosted India’s onion exports are now causing concern for exporters.
 

Exporters further report that Indian onion seeds are being illegally transported to various countries, allowing them to boost their own production and reduce dependency on India.
 

Exporter Ajit Shah told The Economic Times, “Our onions used to fetch good prices because of their quality. But during the export bans, we disappeared from the international market, and buyers found new suppliers. Now they prioritize price over quality.”
 

India banned onion exports for six months starting in September 2019 and again for five months starting in September 2020. These bans caused price spikes in countries dependent on Indian onions. In 2020, Bangladesh even sent a diplomatic message to India regarding the issue.
 

Later, to protect domestic farmers, Bangladesh reduced its onion imports from India. In the 2023–24 fiscal year, India exported 724,000 tonnes of onions to Bangladesh 42% of its total exports. But in the first six months of the 2025–26 fiscal year, Bangladesh imported only 12,900 tonnes. While some blame the current political situation, exporters argue that frequent bans are the primary reason.
 

Pasha Patel, a member of India’s Ministry of Commerce Board of Trade, said, “We have not only lost our traditional buyers, but they are now becoming self-sufficient by using our onion seeds.”
 

Meanwhile, Indian exporters claim that Saudi Arabia has not bought onions from India for nearly a year. Government inquiries found that Saudi Arabia stopped approving Indian exporters because it is getting cheaper onions from Yemen and Iran. In the case of the Philippines, they buy Indian onions only if Chinese onions are unavailable.