India's onion exports ban might impact Asian market

 

India has recently stopped the exports of its most demanded item, onion due to the climate uncertainty and fuel domestic market. This might impact the Asian market as the biggest importers for India’s onion are Asian countries. India is the third largest exporter of onions globally. According to the India export data, the country’s onion exports shipments were over 2.5 million tonnes and estimated to be $609 million during FY 2022.

Whereas, the current onion exports stood at $513 million tonnes. The top markets for India’s onion exports were Malaysia, Indonesia, Sri Lanka, United Arab Emirates and Vietnam. Malaysia is the top buyer of onions from India. As per India import export data reports, Malaysia was responsible for over $218 million worth of onion shipments in FY 2022. Indonesia is the second largest onion importer from India with imports worth over $80 million dollars.

The fastest growing markets for India’s onion exports were majorly Kuwait, Philippines, Singapore, Mauritius and Nepal. Asian countries were responsible for over 90% of India’s overall onion exports. Green India was the top onion supplying company from India responsible for over 34% share of India's overall onion exports. Whereas, Sanghar Exports, Rakhee Enterprises, and Swan Overseas are among the top India's onion export companies from India.

For the financial year 2022, Bangladesh was the leading onion exporter having over 26% market share. Whereas, Malaysia was the second major buyer for onion imports from India having over 19% share. Bangladesh, Malaysia, United Arab Emirates and Nepal rely mostly on onion imports from India. India's onion export ban might result in soaring onion prices.  

India import data shows that the country's onion imports were merely $25 million during this fiscal year. The imports mostly came from Afghanistan, Iran, Egypt and Israel. Abdul Wasi Arabzai Trading and Emran Qalandari from Afghanistan were the top onions exporters to India accounting for the maximum number of onions export shipments. 

India’s overall agricultural exports crossed over $132 billion during fiscal year 2023. Among India’s top agricultural exports, onions accounted for the 41% share followed by dried legumes (26% share). Other crucial exports includes kabuli chana, desi chana, beans of species vigna mungo, cow peas, green chilly, tomatoes and sweet corn. 

As per India customs data, tomatoes accounted for over $1.6 billion worth of exports. The top destinations for India’s agricultural exports were Malaysia (18%), Netherlands (15%), Sri Lanka (9%), the United States (8.42%), United Arab Emirates (8.28%) and Indonesia (7.26%). Kogta import export, Green India, and Sanghar Exports were the leading agricultural goods export companies from India.

On the other hand, the country's agricultural imports were recorded to be $3.2 billion in the financial year 2023. India's agricultural import shipments came from Myanmar (30%), Australia (17%), Canada (16%) and Mozambique (10%). Etc Agro Processing, Swiss Singapore and Taj Agro Worldwide were the top agricultural goods importing companies from India.

India’s ban on onion exports has created a huge financial risk for the exporters of India. Through global import export data provider trade intelligence reports, Indian import export companies can minimize risk by identifying risks, latest trends, demand, price, buyers, suppliers, and competitors. It will help you perform market research and make better business decisions.