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India greenlights onion exports to Bangladesh.
Feb 21, 2024
Following a directive from the Indian foreign ministry, the Department of Foreign Trade (DGFT) has sanctioned urgent onion exports to select countries, including Bangladesh, Nepal, Bhutan, Bahrain, and Mauritius, despite the absence of an official announcement. This move, aimed at stabilizing the domestic markets of these nations, marks a significant and unprecedented decision by the Indian government. Concurrently, the Maharashtra government has disclosed approval for exporting 3oo,000 tonnes of onion, highlighting the central government's commitment to regional market stability.
During a recent visit to India, Bangladesh's Foreign Minister Hasan Mahmood appealed for the normalization of essential commodity exports, including onions, suggesting a quota system for Bangladesh to alleviate shortages. This comes as Bangladesh grapples with an annual onion demand of 2.2 to 2.5 million tonnes. In anticipation of Ramadan, State Minister for Commerce Ahsanul Islam Titu expressed optimism about securing 50,000 tonnes of onions, following assurances from India, despite ongoing discussions being delayed by the Indian Foreign Minister's commitments abroad.
This development is particularly crucial for Bangladesh, heavily reliant on imported onions, and is expected to positively influence market stability and consumer welfare. India's decision to resume limited onion exports, after a halt declared last December to control domestic prices, is a welcome move for the region.
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