The Profitable Business of Onion Exports from India: Key Insights and Strategies

Key highlights

• India is a significant exporter of onions worldwide, taking advantage of its large supply to meet demand in other countries.
• As per onion export data, about 2.5 million metric tons of onion exports from India; major destinations include Bangladesh, Bhutan, Bahrain, Mauritius, and the United Arab Emirates.
• Due to a domestic shortage, the Indian government banned onion exports until March 31, 2024, which has a substantial impact on export dynamics.
• Gujarat, Madhya Pradesh, Rajasthan, Maharashtra, and Karnataka are important states that produce onions.
• India is a major exporter of onions, particularly Agrifound Dark Red, Agrifound Light Red, and Pusa Red, which are prized for their flavor and pungency.
• The price differences between the domestic and international markets have prompted smuggling activities in response to recent government restrictions.
• Leading Indian onion exporters are businesses like Jain Farm Fresh Foods Ltd. and Sarah Exim Pvt. Ltd.
• Onion HS codes are 07031010, 07122000, and 07031019, which classify many onion varieties for trade internationally.

Around the world, onions are a staple in cooking, adding flavour to everything from pizza to salads. Onions are in constant demand due to their flavour and a vast range of applications in the global market. However, the commonly used onion, seen in kitchens all across the world, is surprisingly significant to India's export industry.

India, being a prominent producer of onions, possesses the ability to access a profitable worldwide market. During the fiscal year 2023, India exported about 2.5 million metric tons of fresh onions.  However, what makes exporting onions profitable, and how can you succeed in this industry? This informative blog delves into essential knowledge and market insights, such as onion export data, a list of onion exports from India, onion exporters in India, and updated onion HS codes.

Is onion exporting profitable?

India's onions are in high demand worldwide, and nations are keen to purchase this vital component. Indian onions are prized for their high quality and adaptability, and may be found in kitchens all around the world, from the busy marketplaces of Asia to Europe.

India is a major player in this dynamic international trade, providing a plentiful supply of onions to consumers across the globe.

Let's talk about onion exports from India in brief!

India's Performance in Exporting Onions

• India is the world's greatest producer of onions, contributing over 25% of global production, according to trade figures. 
• While onions are grown all over India, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, and Gujarat are the states that produce the most onions.
• Based on a recommendation from the Ministry of External Affairs, India has authorized government-to-government onion supplies to a number of nations.

On December 8, 2023, the government declared that onions may not be exported until March 31, 2024. It's been extended for eternity. Onions may, however, be exported with authorization from the central government upon request from the countries, according to the DGFT notification.

Also Read: Agri Products Exports from India 2023-24

However, smugglers were drawn in by the huge gap between local and export market prices, according to trade sources. They calculate that 700–800 tons of onions are illegally exported each week. They claimed that the smugglers profit about ?30 lakh for every 28–30 tonne container. 

An overview of onion exports from India

In response to diplomatic requests, India has prioritized allowing onion exports to a select few nations, an official said. However, the world's top exporter of onions will continue to forbid exports abroad due to forecasts of decreased output for the next two years, an official stated recently.

The export restriction was put in place in December 2023 as a result of a shortage in domestic supplies and the failure of a 40% export tax to lower prices, which had more than risen to ?100 per kilogram in some areas.

The source claimed that the Union government had approved the export of 50,000 tonnes of onions to Bangladesh and 550 tonnes to Bhutan, on top of the 3,000 tonnes that were shipped to Bahrain, 1,200 tonnes to Mauritius, and 14,400 tonnes to the United Arab Emirates.

"Many of these countries are our immediate neighbors, and historically, India has supplied a large portion of their onion needs. As a result, they are given priority," the officer in question stated.

Official estimates state that India will harvest 19.3 million tonnes of rabi, or winter-grown onions, in 2023–2024. This is around 18% less than the 23.6 million tonnes produced in the previous season.

Onion Export Data from India: 2023-24

In 2023–24, 14,005 Indian exporters shipped onions to 31,075 purchasers, accounting for 819.8K of total onion exports from India.

India is the world's greatest onion exporter, with the majority of its exports going to Sri Lanka, Malaysia, and the United Arab Emirates, according to onion exporters data.

Also read: Exploring India's Maize Export Industry

According to onion export data, Indian onion exporters figures show that India is the top exporter of onions, with 819,774 shipments, followed by China with 55,136 shipments and the Netherlands in third place with 52,781 shipments.

However, India's top three onion export product categories are: onion HS codes: 07031010, onion HS codes: 07122000, and onion HS codes: 07031019 (HSN codes).

Top 10 Onion exporting countries

Here are the two major onion exporting countries.

These are the top onion exporters. Additionally, get in contact with the Eximpedia platform as soon as possible to obtain the most recent information on onion exporters, Indian onion exporters or Onion hs codes if you require the list of onion exports from India, exporters of onion in India, or onion export data

The varieties of onions that India exports

Owing to their sharp taste, Indian onions enjoy great fame globally. India exports a variety of onion varieties.

The major onion exports from India are:

• Agrifound Dark Red
• Agrifound Light Red
• NHRDF Red
• Agrifound White
• Agrifound Rose
• Agrifound Red
• Pusa Ratnar
• Pusa Red
• Pusa White Round

Many states in the nation—Maharashtra, Karnataka, Madhya Pradesh, Gujarat, Bihar, Andhra Pradesh, Haryana, and Telangana—grow onions. Owing to their sharp taste, Indian onions enjoy great fame globally.

Future of Indian Onions Export Market

The year 2023 has not been kind to the onion farmers of Nicaragua; a series of unanticipated weather events have severely damaged and almost destroyed their harvests. The government first raised export duties to control retail prices before temporarily banning all exports. Our current series "What's Ailing Rural India" features CNBC-TV18's Santia Gora, who uncovers that these regulations have only hurt farmers and onion vendors.

Export Prohibition: 2023–2024

According to Onion export data, the country exported a record-breaking 2.5 million metric tonnes of onions in 2022–2023. August 2023 saw a 40% duty on onion exports from India, and December 2023 saw a total ban on them until the end of March 2024. However, Farmers contend that these actions have put a heavy financial strain on their meager resources.

Farmers assert that political considerations played a role in the government's decision-making, despite the government's assertion that maintaining constant retail prices was its primary goal.

The recent restricted exports are a good start, but the government's ability to strike a balance between maintaining domestic price stability and taking advantage of international markets will determine how far Indian onion exports can go in the long run. Ensuring a consistent supply for both domestic consumption and targeted exports would require constructing strong stockpiles and putting in place effective storage and transportation infrastructure.

How to find top Onion Exporters in India

India holds a significant position in the global onion market, owing in part to the efforts of multiple businesses. Approximately 7% of India's onion exports in 2017 came from Jain Farm Fresh Foods Ltd., one of the country's largest onion exporters. According to the 2017–2018 APEDA awards, Sarah Exim Pvt. Ltd. is the biggest Indian onion exporters.

Looking for Onion buyers or suppliers?

Market research must be done in order to identify onion buyers or suppliers among overseas traders. Eximpedia.app is a well-known market research company in India. Businesses can carry out international commodities commerce more effectively thanks to it.

We offer the most up-to-date, completely accurate, and trustworthy exim data, onion export data or onion import data for several nations, including India. In addition, we also offer an updated list of onion exports from India, a list of Indian onion exporters, the most recent information on onion exports from India, and onion HS codes.

Final Words

The increasing trend of onion exports from India represents a substantial chance for prosperity and economic success. Exporters can confidently navigate the onion export landscape by adhering to the detailed advice explained above and using caution when faced with associated risks. On the other hand, you can use live data to conduct a free information search in India if you are a trader seeking onion export data from India, Indian onion exporters. Please get in touch with our dedicated data professionals at any moment to arrange a free live demo and learn more!

Frequently Asked Questions

Q1. Who is the best exporter of onion?

As per onion exporters data, Indian onion exporters figures show that India is the top exporter of onions, with 819,774 shipments, followed by China with 55,136 shipments and the Netherlands in third position with 52,781 shipments.

Q2. Which country imports the most onions?

Based on onion import data, the United States ($826M), Indonesia ($546M), Vietnam ($433M), Germany ($350M), and Malaysia ($332M) were the major importers of onions in 2022.

Q3. Who is the largest importer of onion from India?

Based on onion exporters data, India is the world's largest exporter of onions, with the majority of its exports going to the United Arab Emirates, Malaysia, and Sri Lanka.

Q4. Which state in India produces the most onions?

Based on trade numbers, India is the world's largest producer of onions, accounting for approximately 25% of global production. Although they are farmed throughout India, the states that produce the most onions are Gujarat, Maharashtra, Karnataka, Madhya Pradesh, and Rajasthan.

Q5. Who is the largest exporter of onion powder in the world?

India is the world's greatest onion exporter, with the majority of its exports destined for Sri Lanka, Malaysia, and the United Arab Emirates, according to data on onion exporters.

Q6. What is the HS code for onion export?

India's top three onion export product categories are: onion HS codes: 07031010, onion HS codes: 07122000, and onion HS codes: 07031019 (HSN codes).

Top Onion Exports Globally 

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Updated Onion Export Data

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Onion export data from Bangladesh