A steady decline in onion exports as a result of the uncertain policy

New Delhi: Onion exports were at a six-year low in the last financial year as a result of a four-month ban on onion exports from the country and a drop in global demand due to corona. The volume increased but export earnings declined by nine per cent year-on-year. Pakistan is taking advantage of export controls by India in the world market.

In the last financial year, the export revenue of onions was Rs 2,108 crore. In 2017-18, the export income through onions was Rs 21 crore, but since then it has been declining steadily. In the last financial year, the export volume was 16.06 lakh tonnes.

Onion export earnings are declining due to the uncertain policy of the government on the issue of onion exports. Whenever onion prices skyrocket, the government cracks down on its exports.

Onions could not be exported from September last year to January this year. "When our exports stop, it is only natural that buyers turn to other markets," said an official of the Horticulture Produce Exporters Association.

When India bans onion exports, it directly benefits Pakistan. Pakistan, which used to be able to export onions only for one or two months in a year, can now do so for the last two-three years to six to seven months.

Bangladesh has been India's largest importer of onions, followed by Malaysia and the United Arab Emirates.

Exports were also affected as supply transactions were disrupted by Corona in the last financial year. Exporters faced a huge shortage of containers.