Onion exports have slowed down in recent months. Notably, Bangladesh’s efforts to become self-sufficient in onions and its shift to other markets are the significant reasons behind this slowdown. This situation arose after the central government halted onion exports to control domestic inflation.
Bangladesh previously accounted for a third of India’s onion exports
Experts say that Bangladesh previously accounted for about a third of India’s onion exports. However, the neighboring country has purchased only a small amount of onions in the past eight months. Similarly, Saudi Arabia has significantly reduced its onion purchases for almost a year. Exporters say that illegally exported Indian onion seeds are helping traditional importers become self-sufficient, undermining India’s dominance in this onion trade.
Impact of Export Restrictions
Between August 2023 and April 2025, India imposed similar restrictions on onion exports. Earlier, complete export bans were imposed for six and five months in September 2019 and September 2020, respectively. Currently, the Bangladesh government has halted Onion exports from India to protect its onion farmers and boost local production. Saudi Arabia has informed Indian exporters that it is purchasing onions from Yemen and Iran at competitive prices. Not only this, but it also has sufficient local production. India’s exports to Saudi Arabia declined from 57,000 tons in 2020-21 to just 223 tons in 2025-26.
Illegal Use of Indian Seeds in Neighboring Countries
Pasha Patel, a member of the Governing Council of the Board of Trade of the Ministry of Commerce, stated that several traditional buyers have become self-sufficient in onions by using Indian onion seeds. In addition, HPEA Vice President Vikas Singh acknowledged that Bangladesh, Sri Lanka, and other neighboring countries are producing onions using Indian onion seeds. He called this a serious challenge for Indian Onion farmers and demanded a ban on the export of onion seeds.
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