India’s export diversification over the past decade has not been limited to mobile phones and electronics—it has also expanded to include onions and shallots.
A Private source analysis indicates that until 2024, before the government imposed price control measures, India’s onion exports saw a growing share in the Middle East and Europe, while exports to South Asia and Southeast Asia declined.
On March 22, the government lifted the 20% export duty on onions, which had been in place since September to control soaring prices. The duty was introduced after earlier efforts, such as an export ban and minimum export price requirements, failed to stabilize onion prices. Historically, onion price surges have even influenced Indian politics, notably contributing to the fall of the Delhi government in 1998.
“To ensure domestic availability, the government imposed export restrictions through duties, minimum export price (MEP), and even a full export ban for nearly five months—from December 8, 2023, to May 3, 2024. The 20% export duty, now removed, had been in effect since September 13, 2024,” stated the Consumer Affairs Ministry.
In 2023, the Middle East accounted for 22.71% of India’s onion exports, up from 19.12% in 2013. Europe’s share also increased from 0.7% a decade ago to 1% in 2023.
India exported 2.53 billion onions and shallots in 2023, a rise from 2.13 billion in 2022. However, exports dropped 65% in 2024, falling to 0.9 billion. In 2023, India’s onion exports were valued at $642 million.
Impact of the Pandemic
The COVID-19 pandemic disrupted India’s onion exports, shifting trade patterns more towards South Asia.
In 2019, the Middle East was on the verge of overtaking South Asia as the largest importer of Indian onions. Led by the UAE, the Middle East’s share in India’s onion exports rose to 31.6%, while South Asia’s share fell from 49.3% in 2013 to 36.7%.
European countries, including the UK, Greece, Italy, and Spain, accounted for 2.2% of India’s onion and shallot exports.
By 2023, the UAE surpassed Bangladesh, Malaysia, and Sri Lanka to become the top importer of Indian onions.
Meanwhile, India’s onion inflation surged to 30% in February, up from 16% in January, with an average inflation rate of 39% for FY25 (up to February).
