Onions and shallots market in Sri Lanka

Earlier Report Observations

Government initiatives to expand off-season onion cultivation in the Hambantota district aimed to increase domestic production and reduce import dependence at the start of the period. Market volume nonetheless fluctuated, declining to 321 000 t in 2019 before recovering to a peak of nearly 390 000 t by 2021, with imports consistently making up the majority of supply.

A sharp increase in the Special Commodity Levy on imported big onions in September 2022 sought to protect local farmers by raising import costs. This was followed in 2023 by India's imposition of a 40% export duty, which restricted shipments from a key supplier, drove up prices, and forced a shift to more expensive alternative sources. Supply constraints were partially eased in 2024 when India lifted its export ban specifically for Sri Lanka.

Production onions and shallots in Sri Lanka

In kind, 2017-2020, K t

Top producers of onions and shallots, 2017-2020

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

Sri Lanka's production of onions and shallots increased in 2020 after two years of decline. In 2020, the country produced 108.9 K t of onions and shallots, marking a 41.7% increase compared to 2019. The lowest production level was recorded in 2019 at 76.8 K t. Between 2017 and 2020, overall production decreased by 2.2%, which translates to an average annual decline of 0.7%. The largest year-on-year drop occurred in 2018, when production fell by 20.0%.

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

Exports onions and shallots from Sri Lanka

Exports in kind, K t

Export volumes of onions and shallots from Sri Lanka showed significant volatility during this period. The lowest exports were recorded in 2017, while the highest level was reached in 2019 at 1.8 K t. In 2020, exports stood at 1.6 K t, representing a 14.6% decrease from the previous year. The gap between the highest and lowest export years was substantial, with 2019 exports being 55 times greater than those in 2017. The most dramatic increase occurred in 2019, when exports surged by 976.9%.

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

Between 2017 and 2020, three countries accounted for the majority of Sri Lanka's onion and shallot exports by volume. Bangladesh was the largest destination, absorbing 45.6% of exports, followed by India with 23.3% and Maldives with 11.2%. Together, these three markets represented 80.1% of Sri Lanka's total onion and shallot exports during this period.

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

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

Exports in value, M $ US

The value of Sri Lanka's onion and shallot exports grew for the third consecutive year in 2020. Export value reached 1.9 M $ US in 2020, representing a 42.0% increase compared to 2019. Between 2017 and 2020, export value increased dramatically by 1 801.7%, which corresponds to an average annual growth rate of 166.9%.

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

From 2017 to 2020, Bangladesh, the United Arab Emirates, and Maldives formed the primary group of destinations for Sri Lanka's onion and shallot exports by value. Bangladesh accounted for 22.1% of export value, followed by the United Arab Emirates with 20.5% and Maldives with 12.9%. Together, these three countries represented 55.4% of Sri Lanka's total onion and shallot export value during this period.

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

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

Imports onions and shallots to Sri Lanka

Imports in kind, K t

Sri Lanka's imports of onions and shallots increased in 2020, reaching 272.1 K t. This represented a 10.5% gain compared to 2019. Between 2017 and 2020, import volumes grew by 11.9%, with an average annual growth rate of 3.8%. The largest decline occurred in 2019, when imports fell by 6.5%.

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

India dominated Sri Lanka's onion and shallot imports by volume between 2017 and 2020, accounting for 77.4% of total imports. The remaining imports were distributed among various smaller trading partners.

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

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

Imports in value, M $ US

The value of Sri Lanka's onion and shallot imports increased for the second consecutive year in 2020, reaching 111.7 M $ US. This represented a 25.4% rise compared to 2019. Between 2017 and 2020, import value grew by 27.1%, with an average annual growth rate of 8.3%. The lowest import value was recorded in 2018 at 76.0 M $ US, which also saw the largest decline of 13.5%.

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

Between 2017 and 2020, India and Pakistan remained Sri Lanka's primary suppliers of onions and shallots by value, together accounting for 82.5% of total import value. The remaining imports were distributed among various other countries.

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

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