Onions and shallots market in India

Earlier Report Observations

The market for fresh onions and shallots in India expanded significantly between 2018 and 2023, with volume growing from 21.6 million metric tons to 27.7 million metric tons. After a stable phase in 2018-2019, production increases led to sharp growth in 2020 and again in 2022, though the market contracted in 2023.

A key turning point came in late 2023 when the government imposed a ban on onion exports to curb domestic price rises, responding to anticipated lower production and heightened demand. This intervention contributed to the market's decline that year. Over the longer term, a reduction in the area under onion cultivation beginning in 2021 gradually tightened supply conditions.

Regulatory activity continued into 2024 with the export ban being lifted under new conditions and direct price stabilization measures, reflecting the ongoing influence of state policy on market dynamics.

Production onions and shallots in India

In kind, 2017-2020, K t

Globally, India ranked as the world's second-largest producer of onions and shallots from 2017 to 2020.

Top producers of onions and shallots, 2017-2020

World map of production of onions and shallots, 2017-2020

In 2020, India produced 26 091 thousand tonnes of onions and shallots, marking a 14.3% increase compared to 2019. Over the period from 2017 to 2020, production grew by 16.3%, which translates to an annualized growth rate of 5.2%. The most significant decline occurred in 2019, when production fell by 1.9%.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following a two-year decline, onion and shallot production in India rebounded. In 2020, the output was valued at 6 243 million US dollars, representing a moderate increase of 8.8% over the previous year. From 2017 to 2020, production value rose by 6.7%, equivalent to an annualized growth rate of 2.2%. The lowest value was recorded in 2019 at 5 739 million US dollars, while the largest decline took place in 2018 with a 1.2% drop.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports onions and shallots from India

Exports in kind, K t

India's cross-border shipments of onions and shallots declined for the second consecutive year. In 2020, exports stood at 1 449 thousand tonnes, reflecting a 0.8% decrease year-over-year. Between 2017 and 2020, exports fell by 10.7%, which corresponds to an annualized decline of 3.7%. The peak export volume was recorded in 2018 at 1 688 thousand tonnes. The most substantial decline occurred in 2019 with a 13.5% drop, while the largest increase was seen in 2018 with a 4.1% rise.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

The structure of India's onion and shallot exports in volume terms from 2017 to 2020 shows a diversified set of trading partners. Bangladesh accounted for 18.5% of exports, Malaysia for 17.5%, and the United Arab Emirates for 13.9%. Together, these three markets represented 50.0% of total export flows, with the remaining 50.0% distributed among numerous smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

India's cross-border shipments of onions and shallots declined for the third consecutive year. In 2020, exports amounted to 346.6 million US dollars, down by 5.6% compared to the previous year. Over the 2017-2020 period, exports decreased by 18.1%, with a compound annual growth rate (CAGR) of -6.4%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

From 2017 to 2020, Malaysia, Bangladesh, and Sri Lanka remained the principal buyers of Indian onions and shallots in value terms. Malaysia accounted for 19.0% of exports, Bangladesh for 17.4%, and Sri Lanka for 15.1%. Collectively, these three countries represented 51.5% of India's total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports onions and shallots to India

Imports in kind, K t

India's volume of onion and shallot imports increased for the third consecutive year. In 2020, imports totaled 131 thousand tonnes, reflecting a steep rise of 72.1% compared to the prior year. Between 2017 and 2020, imports surged by 1 888.3%, equating to an annualized growth rate of 170.9%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, Afghanistan, Egypt, and Turkey stood out as the main sources for India's onion and shallot imports in volume terms. Afghanistan accounted for 47.6% of imports, Egypt for 21.3%, and Turkey for 17.8%. Together, these three countries represented 86.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

There were noticeable fluctuations in market performance during this period. Import volumes varied significantly, with a 55-fold difference between the low in 2018 and the high in 2020. In 2020, India's onion and shallot imports totaled 67.7 million US dollars, up by 69.9% compared to 2019. The minimum value was recorded in 2018 at 1.2 million US dollars. The largest decline occurred in 2018 with a 32.7% drop, while the largest increase was seen in 2019 with a 3 141.4% surge.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

From 2017 to 2020, Afghanistan, Turkey, and Egypt formed the main cluster of markets for India's onion and shallot imports in value terms. Afghanistan accounted for 41.8% of imports, Turkey for 22.4%, and Egypt for 21.1%. Together, these three countries represented 85.3% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020