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India has emerged as a significant player in the global onion market, with a strong focus on exports to countries such as Germany, Sri Lanka, and Malaysia.
Introduction
India has emerged as a significant player in the global onion market, with a strong focus on exports to countries such as Germany, Sri Lanka, and Malaysia. As the world's third-largest onion producer, India's onion exports have contributed significantly to the country's agricultural economy. In this blog, we will explore the key aspects of India's onion exports to these countries and the factors that have contributed to this growth.
India's Onion Exports to Germany
India's onion exports to Germany have been steadily increasing over the years, with the country exporting over 120,000 metric tons of onions to Germany in 2021. This growth can be attributed to the high demand for onions in Germany and the competitive pricing of Indian onions. Additionally, India's geographical location and logistical advantages have made it an attractive supplier for European countries like Germany.
India's Onion Exports to Sri Lanka
Sri Lanka is another major importer of Indian onions, with the country importing over 50,000 metric tons of onions from India in 2021. The proximity of the two countries and the high demand for onions in Sri Lanka have contributed to this growth. Moreover, the quality of Indian onions and the competitive pricing have made them a preferred choice for Sri Lankan consumers.
India's Onion Exports to Malaysia
Malaysia is also a significant importer of Indian onions, with the country importing over 40,000 metric tons of onions from India in 2021. The demand for onions in Malaysia is high, and Indian onions have been able to meet this demand due to their competitive pricing and high quality.
Factors Contributing to India's Onion Exports
High production:
India is the world's third-largest onion producer, with an annual production of over 23 million metric tons. This high production has enabled India to meet the demand for onions in the global market. India's onion production has varied by 24.33%, whereas the quantity of onion exports has grown at a pace of 3.14 percent per year. The onion is a valuable agricultural commodity farmed all over the world for both culinary and medicinal purposes[2]. India is the second biggest producer of onions after China, and onions are a basic food in many nations, including India, which is a major producer and exporter of onions. The government offers subsidies to onion exporters, and India has two major onion harvests, and onion prices change throughout the year.
Competitive pricing:
Indian onions are priced competitively, making them an attractive choice for importers. India exported roughly 2.5 million metric tonnes of fresh onions in the fiscal year 2023, making it the third largest exporter after The Netherlands and Mexico, which command about 15.8% and 11.7% of the market share respectively. India commands about 10%. Its major export destinations include Bangladesh, Malaysia, the UAE, Sri Lanka, Nepal, Indonesia, Qatar, Vietnam, Oman and Kuwait.
Quality:
Indian onions are known for their high quality, with a longer shelf life and better taste compared to onions from other countries. Onions usually grow best under mild weather conditions, and the sudden increase in temperature, unseasonal rainfall, and climatic occurrences can affect the quality of onions and reduce their shelf life. The rabi crop (of onions) contributes the most to production in a calendar year, and as per the first advance estimates, the production of onion is pegged at 31.1 MT this year, down from 31.7 MT in 2021-22.
Geographical location:
India's geographical location and logistical advantages have made it an attractive supplier for countries in Europe, Asia, and the Middle East. India has approved onion shipments to several countries on a government-to-government basis, based on the Ministry of External Affairs' proposal. One of the government officials stated that a small quantity of onion exports has been permitted for bilateral purposes. Still, no decision has been made for relaxing the total restriction on onion exports. The identity of the exporting agency could not be determined. India's top three onion export product categories are: onions, fresh, whole, onions, fresh, prepared or preserved by peeling, cutting, washing, brushing, waxing, or dehydrating, and onions, fresh, prepared or preserved by other means.
Here's a table of India's top 10 onion export destinations according to Onion export data from India:
S. No. |
India's Export Destinations for onions |
Export Data |
1. |
Bangladesh |
30.26 |
2. |
Malaysia |
18.48 |
3. |
United Arab Emirates |
13.24 |
4. |
Sri Lanka |
12.55 |
5. |
Nepal |
6.6 |
6. |
Indonesia |
4.51 |
7. |
Saudi Arabia |
4.02 |
8. |
Qatar |
3.74 |
9. |
Kuwait |
3.35 |
10. |
Qman |
3.25 |
So, these are the top India’s export destinations for onions. However, if you need the updated onion export data from India, Indian onion exporters list or HS codes for onions, you can visit the website of the Directorate General of Commercial Intelligence and Statistics (DGCIS) or the Ministry of Commerce and Industry.
Conclusion
In conclusion, India's onion exports have been a significant contributor to the country's agricultural economy, with Germany, Sri Lanka, and Malaysia being key importers of Indian onions. The growth of India's onion exports can be attributed to several factors, including high production, competitive pricing, quality, and geographical location.
At Arham Agro Exports, we are proud to be a part of India's onion export industry, providing high-quality onions to our customers around the world. We believe that India's onion exports have the potential to grow even further, with the right support and infrastructure.
As a reader, we hope that you have gained valuable insights into India's onion exports and the factors that have contributed to this growth. If you are interested in learning more about our onion export services, we invite you to visit our website at Arham Agro Exports.
Thank you for taking the time to read our blog, and we look forward to serving you in the future.
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