28 march, 2025

Introduction

India is one of the largest producers and exporters of onions, playing a crucial role in the global trade of this essential agricultural commodity. Recently, the Indian government announced a 20% reduction in export duty on onions, effective from April 1, 2025, which is expected to provide Indian farmers and exporters a competitive edge in international markets. This move aims to boost onion exports by making Indian onions more affordable and attractive to global buyers. With demand surging in key markets such as Bangladesh, UAE, Malaysia, Sri Lanka, and Nepal, exporters now have a golden opportunity to capitalize on this policy change and expand their reach. However, exporting onions successfully requires a structured approach, from compliance with regulations to identifying the right markets and buyers.

India plays a crucial role in the global market as it is one of the largest producers and exporters of onion

Step-by-Step Process to Export Onions from India

Exporting onions from India involves several critical steps, beginning with obtaining the necessary registrations and documentation. The first requirement is registering the business and obtaining an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). This is a mandatory step for any entity involved in export activities. Once registered, businesses need to conduct market research to determine the demand, pricing trends, and regulatory requirements in different countries. Understanding which countries have a strong demand for Indian onions and the associated import conditions can significantly improve an exporter’s success rate.

The next step is sourcing and quality control. Onions meant for export must meet international quality standards, including size, color, and freshness. Many countries require a Phytosanitary Certificate, issued by India’s agricultural authorities, ensuring that the exported onions are free from pests and diseases. Proper packaging is also crucial, as onions must be transported in well-ventilated, moisture-resistant sacks to maintain their freshness and prevent spoilage during transit.

Once the onions are ready for shipment, exporters must ensure that they have all the necessary documentation, including the Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin, and the Phytosanitary Certificate. These documents are essential for customs clearance both in India and in the importing country. Choosing the right logistics and shipping method is also vital—whether by sea or air, depending on the destination’s distance and the urgency of the shipment.

Top 5 Export Markets for Indian Onions

Rank	Country	Export Volume (MT)	Export Value (USD Million)	Key Importing Ports
1	Bangladesh	1,200,000+	400+	Chittagong, Mongla
2	Malaysia	400,000+	150+	Port Klang, Penang
3	UAE	300,000+	120+	Jebel Ali, Abu Dhabi
4	Sri Lanka	250,000+	90+	Colombo
5	Nepal	200,000+	70+	Birgunj, Bhairahawa

1. Bangladesh

Bangladesh is the largest importer of Indian onions, with an estimated import volume of 671,000 metric tons in the last fiscal year. The proximity of Bangladesh to India makes it an ideal market due to lower transportation costs and quick delivery times. Additionally, Bangladesh’s domestic onion production is insufficient to meet demand, making Indian onions a necessity in the market. The removal of export duty will further strengthen India's dominance in this sector.

2. United Arab Emirates (UAE)

The UAE is a significant market for Indian onions, with an annual import volume of around 403,000 metric tons. Apart from direct consumption, the UAE serves as a re-export hub, supplying onions to other Middle Eastern countries. The demand for onions in the UAE remains high due to a growing population, a thriving hospitality industry, and strong trade ties with India.

3. Malaysia

Malaysia is one of the fastest-growing markets for Indian onions, with an estimated import value of ₹8.4 billion annually. Onions are an integral part of Malaysian cuisine, used extensively in everyday cooking, making them a high-demand commodity. The ease of shipping from Indian ports to Malaysia further makes it a lucrative market for exporters.

4. Sri Lanka

Sri Lanka relies heavily on Indian onions to supplement its domestic supply. India exports a significant portion of its onions to Sri Lanka, especially during periods when local production falls short due to climatic conditions. The reduction in export duty will allow Indian exporters to offer more competitive prices, ensuring sustained demand from this market.

5. Nepal

Nepal is another consistent importer of Indian onions due to its geographical proximity and limited domestic production. Nepalese traders prefer Indian onions because of affordability and short transit times. The new export duty policy will further enhance India’s ability to supply onions at more attractive price points, securing its position as Nepal’s top supplier.

Demand Analysis of Indian Onion Exports

The demand for Indian onions is driven by several key factors. Geographical proximity to major importing countries ensures that transportation costs remain low, making Indian onions more cost-effective than those from competing nations. Additionally, onions are a staple ingredient in the cuisines of these countries, ensuring year-round demand. Seasonal variations also play a role in increasing demand—many countries experience periodic shortages due to climate conditions, making them dependent on imports. Lastly, strong trade relations and historical ties between India and these markets create a seamless trading environment, reducing bureaucratic hurdles and enhancing business opportunities for Indian exporters.

Challenges in Onion Exporting and How to Overcome Them

While the reduction in export duty is a positive development, there are still challenges that exporters must navigate. Fluctuating market prices can impact profitability, making it crucial for exporters to analyze market trends before finalizing deals. Another major challenge is quality control, as different countries have varying standards and regulations regarding onion imports. Ensuring compliance with these regulations is key to avoiding shipment rejections. Additionally, finding reliable buyers can be difficult, as exporters often face fraudulent or unreliable trade partners.

How Export-Import Data Can Help in Finding Reliable Buyers and Suppliers

One of the most effective ways to overcome these challenges is by utilizing export import trade data. With access to real-time global trade insights, exporters can identify high-volume buyers, track competitor shipments, and analyze pricing trends to make informed decisions. Our Exim Data provides comprehensive information, including:

Verified buyer and supplier details, ensuring trustworthy trade partnerships.
HS code-based shipment records, allowing exporters to track global demand.
Trade volumes and pricing trends, helping exporters optimize their pricing strategy.
Country-wise import regulations, ensuring compliance with international standards.

By leveraging export import data, Indian onion exporters can reduce risks, improve profitability, and expand into new markets with confidence.

Conclusion

With the removal of the 20% export duty, India is set to strengthen its position in the global onion trade. Major importing countries like Bangladesh, UAE, Malaysia, Sri Lanka, and Nepal will continue to rely on Indian onions, offering a great opportunity for exporters. However, success in exporting onion requires careful planning, from compliance with regulations to finding reliable buyers. Utilizing export-import trade data can provide a strategic advantage, allowing businesses to identify the best markets, negotiate better deals, and minimize risks. As India gears up for increased onion exports, now is the perfect time for businesses to capitalize on global demand and secure profitable trade opportunities.

How to Export Onions from India: A Comprehensive Guide