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Informist, Wednesday, Jan. 7, 2026

 

By Pallavi Singhal

 

NEW DELHI – The Government of Bangladesh has stopped issuing new import permits for onions from India to protect domestic farmers and support local kharif harvest, said Vikas Singh, vice president of Horticulture Produce Exporters' Association. However, imports under previously approved permits will continue until Jan. 30, allowing shipments already in the pipeline to enter the country, he clarified.

 

According to a report by Dhaka Tribune, while fresh permits have been halted since Monday morning, truckloads of onions are still entering Bangladesh under existing approvals. Monday alone, around 344 tonnes arrived in 12 trucks at Hili land port, it said. 

 

The decision has affected market sentiment on both sides of the border. In India, wholesale onion prices in the key producing hub of Nashik softened sharply. Prices, which were hovering around 22 per kg last week, fell by INR 4–INR 6 per kg to INR 16–INR 18 per kg, said Vikas Singh. Traders said prices began sliding from Monday after news emerged that Bangladesh had halted fresh import permits, reversing the modest firmness seen since Bangladesh resumed issuing permits last month. The downward pressure has been compounded by a surge in arrivals of kharif onions from Maharashtra, which increased overall supply across domestic mandis.

 

In Bangladesh, however, wholesale onion prices which were hovering at 40-50 taka per kg edged up by around 2 taka per kg following the announcement, according to a report by Dhaka Tribune.

 

However, despite the stoppage of new permits, exports have not come to a standstill. Trade sources estimate that 45–60 trucks, each carrying about 30 tonnes of onions, are still being exported daily to Bangladesh under valid permits. Nonetheless, exporters say confidence has been dented, with buyers adopting a wait-and-watch approach amid uncertainty over the post-January policy. "Exports are continuing, but sentiment has clearly weakened after the announcement," a Nashik-based trader said.

 

Singh said prices are likely to stabilise over the next 10 days in the range of INR 15–INR 20 per kg. "With the holiday season, exports had dipped across regions. I see them stabilising in the coming days," he said. While Bangladesh orders have largely dried up following the halt in new import permits, Indian exporters say shipments to other destinations continue, though under mounting pressure. Markets such as Saudi Arabia, Malaysia, Vietnam, Singapore, and buyers across the Gulf region remain active, but traders report that India is facing stiff price competition from Pakistan in these destinations. Exporters said Pakistani onions are currently being offered at more competitive rates, forcing Indian shippers to either lower prices or risk losing market share, further adding to downward pressure on onion prices at Indian wholesale markets.  End

 

Edited by Akul Nishant Akhoury

 

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