India has been in the news more and more often in recent years, due to its impact on the world market. The Indian Government has imposed an export ban on onions starting on 14 September. Consumer prices were rising sharply on the Indian market, so the government decided to immediately implement the export ban in order to keep onions affordable for the local population.
Onions are an extremely important ingredient in Indian cuisine, which is why the government does not allow consumer prices to go up too much. This is the second time that India has imposed an export ban. The first time was in 2019, following a period of heavy rains that resulted in disappointing yields. India produces about 22 million tonnes of onions per year, but consumes about 15 million tonnes itself. The rest is exported to surrounding countries.
There are three harvest periods in India:
– Kharif – harvested in October-December
– late Kharif – harvested in October-December
– Rabi – harvested in March-May. This is the most important harvest, accounting for 70% of total production, and is also for storage.
Neighbouring countries Bangladesh, Malaysia and Sri Lanka are the largest buyers of Indian onions and therefore feel the effects of an export ban directly. This represents great opportunities for Dutch onions.