Indian onion exports, which amounted to $378 million in 2020-2021, $460 million in 2021-2022, and $561 million in 2022-2023, are projected to significantly decline in 2023-2024 due to an eight-month export ban. This situation adversely affects not only farmers but also traders, who are particularly hit by the ban's timing, which coincides with the international contract renewal period in January.
The export ban has resulted in inflated onion prices in neighboring countries like Nepal, Bangladesh, Sri Lanka, Bhutan, and Malaysia, which depend on India for their onion supply. Traders are apprehensive about the long-term financial implications.
The ban also leads to a market share loss for Indian exporters as countries like China and Pakistan gain an edge in providing onions to countries previously reliant on India. Despite the challenging circumstances for onion farmers and traders, experts predict a temporary impact.
Pushan Sharma, Director of Research at Crisil Market Intelligence & Analytics, expresses optimism that, considering India's substantial onion production, these countries might return to import from India once normalcy is restored next year. However, this year, they are forced to look for alternative onion sources.
Source: cnbctv18.com