Bangladesh-bound trucks carrying more than 4,500 tonne of onion from Maharashtra and Madhya Pradesh, which were stuck at Petrapole land port near Bangladesh border in West Bengal since Monday, are now being allowed to enter the neighbouring country, exporters said.
However, on new consignments to Bangladesh, the traders have turned cautious, and decided to wait till the situation in the country improves.
“In the last couple of weeks since the protest erupted in Bangladesh, there have been disruptions in the cross border trade,” a leading exporter of onion told FE adding that for the new export orders there will be delay in execution.
“Till situation stabilises, we will definitely be cautious in executing export orders,” another exporter said.
Official sources said till July 31, 0.26 million tonne (MT) of onion has been exported in the current fiscal out of which a major chunk is shipped to Bangladesh. In FY24, out of the total 1.6 million tonne (MT) of onion exported, Bangladesh had a share of 45%.
Exporters have said that Bangladesh was one of the few countries where onion shipment continued after the government lifted a ban on exports in May.
The government had lifted the ban on onion exports imposed in December last year. However it imposed a minimum export price (MEP) of $550 per tonne and an additional 40% export duty on staple vegetables.
In addition, India exports several commodities including chillies, grapes, oranges, wheat, cotton, pulses and other commodities to Bangladesh.
Meanwhile, the government has procured nearly 0.46 MT of onion from farmers in Maharashtra at market prices in the current fiscal so far for buffer against the target of 0.5 MT, at much higher price compared to FY24.
The average procurement price of onion for the buffer in current fiscal was Rs.2,833/quintal which is 64% higher than Rs.1,724/quintal paid to farmers FY24, according to an official statement.
In FY24, the agencies had purchased 0.64 MT of onion both in rabi and kharif seasons for buffer.
The wholesale mandi prices of onion at Lasalgaon, Nashik – the hub of country’s onion trade is currently ruling in the range of Rs 2200/ quintal – Rs 2300/ quintal against Rs 2700/quintal – Rs 2800/quintal prevailed a fortnight back.
“The challenges in exports to Bangladesh would ensure higher domestic supplies and which may bring down the prices till the kharif crops start arriving in the market by September,” Jaydutt Holkar, director, agricultural produce market committee (APMC), Lasalgaon, Nashik, said
Inflation in onion 58.49% in June on year because of lower production prospects. However in the current season, kharif sowing has been robust across key growing states of Madhya Pradesh, Maharashtra and Maharashtra because of adequate monsoon rains.