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Import Export Red Onions from India

March 9th, 2010 Onion Leave a comment Go to comments

Over the last decade and half the exports of red onions from India has jumped 200 percent. This growth is mostly due to the increasing appetite for Indian red onions in South East Asian countries like Thailand, Malaysia, Singapore, Indonesia and Philippines.

According to many experts in the field the South East Asia and Asia Pacific region hold major opportunities for red onion exporters from India in coming years. The reason behind this optimism is the rising income of people in the region and dominance of onion in the eating habits of people.

Another geographic area which has emerged as major importer of Indian red onion is the Middle East especially Dubai, Saudi Arabia, Bahrain, Qatar and Jordan.

The major challenges faced by the onion exporters from India is the rising minimum export price limit per ton which is set almost at 25 to 30 percent higher than the domestic prices. This is done to discourage excessive exports of red onions from India and support regular supply of red onions in the domestic market.

Secondly the system of state canalizing agencies to manage the onion exports has also increased if not the administrative cost then certainly the time cost of doing business. The minimum support price of exporting prices of red onions in India is set by the government agencies every month and it always remain an uncertainty in which direction the prices will move.

Exporting red onions from India presents a really good business opportunity if one is willing to travel few thousand miles in hot Indian summer and negotiate with small farmers before the harvesting season.


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