Indian onion exporters are navigating a turbulent but promising market, says Abhijeet Borade, CEO of Sudama Global Trade, an Indian exporter of onions and spices. "The color and size of the onion were of excellent quality this year compared to last year. Garwa is the preferred variety since its shelf life is six to seven months, compared to two to three months for red or pink varieties," he explains, highlighting shelf-life as a deciding factor for growers and importers.
Borade exported 35 containers this season, up from 29 last year. "Exports increased this year because climate conditions favored a better crop. Since farmers get better prices for Garwa, they prefer to store and trade this variety." For red onions, the story is different: "Production was lower compared to last year as farmers shifted to Garwa for better shelf-life and profitability."
© Sudama Global Trade
Market preferences are shifting, with Asian destinations increasingly favored over Middle Eastern markets, Borade shares. "Thailand, Vietnam, Malaysia, and Myanmar remain key export markets this season, while the focus on Dubai has declined." The shift is driven by payment reliability and direct interaction: "Many buyers in Dubai offer risky payment terms and lack personal engagement, so exporters are prioritizing markets where buyers visit warehouses, place orders, and ensure smoother transactions."
Borade highlights, "Export prices for Garwa now average FOB USD 0.26 per kg, 10% higher than last year. The price increase is linked to strong demand in Asian markets. Exporters are also benefiting from government policy changes; Last year, export duty was 40%, but now it is zero. This has created favorable conditions for exporters."
© Sudama Global Trade
For now, fierce competition from inexperienced exporters is the biggest challenge for Borade. He explains, "This year, around 400 to 600 new exporters in Nashik entered onion trading, with about 1500 40' FCL shipments. Many have got trapped due to lack of experience and weak payment terms with customers in Middle East markets, particularly Dubai."
Looking ahead, Sudama Global Trade is optimistic about exploring new destinations. "Oman, Nepal, and Sri Lanka offer better returns with less risk. We will continue to prioritize markets with high buyer reliability," Borade concludes.
For more information:
Abhijeet Borade
Sudama Global Trade
Mob:+91 73783 77707
Email: [email protected]
www.sudamaglobaltrade.com