India’s onion exports have stalled in recent months, leaving industry officials puzzled. Analysts suggest this slowdown is linked to Bangladesh’s growing focus on domestic production and its pivot to alternative suppliers like Pakistan and China, after India temporarily restricted shipments to curb local inflation.
Once a major importer, Bangladesh accounted for nearly one-third of India’s onion exports. Yet over the past eight months, it has purchased minimal quantities, even though prices in Dhaka are three times higher. Similarly, Saudi Arabia has imported very little over the past year.
Exporters warn that the use of illegally exported Indian onion seeds is enabling these long-time buyers to produce onions domestically, further eroding India’s dominance in the market.
Between August 2023 and April 2025, India implemented several restrictions on onion exports. Previously, the country had banned exports for six months starting September 2019 and for five months from September 2020.
These measures caused prices to soar in markets that traditionally relied on Indian onions. In 2020, Bangladesh even sent a diplomatic note to India, expressing concern over the frequent policy changes.
Currently, the Bangladeshi government has chosen not to import Indian onions to protect local farmers and boost domestic production.
In 2023-24, India had exported 7.24 lakh tonnes of onions to Bangladesh, which was 42 per cent of India’s total export of 17.17 lakh tonnes in that year. During April September 2025-26, India could export 12,900 tonnes of onions to Bangladesh.
The Centre, attributes this decline partly to the current political situation in Dhaka.
Exporters, however, insist that the main factor is the frequent policy shifts tied to domestic prices, which have pushed traditional buyers to explore other sources.
“Not only have we lost many of our traditional buyers, they have also started becoming self-sufficient in onions by using Indian onion seeds,” said Pasha Patel, a member of the governing council of the Board of Trade under the Ministry of Commerce, reports The Economic Times.
Patel also chairs the Committee for Onion Policy, established recently by the Maharashtra government following farmer protests over low prices.
Exporters point out that Saudi Arabia has also reduced imports of Indian onions, reportedly due to a halt in import permits, while Yemeni and Iranian onions offer competitive pricing.
Even the Philippines now purchases Indian onions only when Chinese supplies are unavailable. India exported 57,000 tonnes to Saudi Arabia in 2020-21, which fell drastically over the years to just 223 tonnes in 2025-26.
Exporters have urged the Horticulture Commissioner to restrict the export of onion seeds to competing countries.
