While onion prices are crushing farmers in the country, onion exporters are also facing an unprecedented crisis since Bangladesh’s sudden decision to halt onion imports from India has shaken the market. As a result, over 30,000 tons of onion stock, worth crores of rupees, is stuck in the border areas of West Bengal and is rapidly rotting. The situation is such that onions purchased at Rs. 22 per kg are being sold for just Rs. 2 per kg.
Why did Bangladesh halt onion imports?
On November 16, Bangladesh’s Import-Export Group issued a notice stating that the Department of Agricultural Extension of Bangladesh will not issue import permits for Indian onion imports. The reason for this is that the Bangladesh government wants to protect local farmers from losses, as the new crop is beginning to arrive there. Onions are typically in high demand in Bangladesh during this season, and the price there is around 100 taka (₹76-80) per kg.
Nearly 30,000 tons of onions stuck at the border
On Friday, the Onion prices reached Rs. 2 per kg at the Mahadipur-Sonamasjid border in Malda district, West Bengal. A 50-kg sack was selling for only Rs. 100. Onions purchased from Nashik at Rs. 16 per kg cost exporters Rs. 22 per kg after including transport and other expenses. However, due to Bangladesh’s import ban, traders are forced to sell them at a fraction of the cost. In Malda itself, onions are being sold for 20-22 rupees per kg in the retail market, but just 7 kilometres away at the border, they are available for 2 rupees per kg.
Onion trucks worth lakhs at a standstill
Based on the demand and trust of Bangladeshi buyers, Indian onion exporters had stockpiled approximately 30,000 tons of onions at the Ghojadanga, Petrapole, Mahadipur, and Hili borders. 20,000 tons of stock were kept at the Mahadipur border alone. If exports had remained open, traders would have received prices of 30–32 rupees per kilo and made a profit of 8–10 rupees per kilo. But as soon as onion imports were halted, all onion trucks came to a standstill, and the onions began to rot. More than 100 labourers are employed daily to remove the rotten onions. To evade huge losses, onion exporters are employing more than 100 labourers daily to separate the rotten onions from the good ones so that at least some of the stock can be sold.
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