Categories: Economy

India resumes onion supply to Bangladesh, more trucks with vegetables to cross the border

As India resumed export of onions to Bangladesh, the local price of this essential kitchen ingredient came down considerably in the south Asian country, much to the relief of the common man there. India banned exports of onion rather abruptly last September after prices of the same had surged at home, has started supplying the same to Bangladesh now.

Even the contracted export deals were affected by the ban on export of this essential vegetable.

Trucks loaded with onions that were headed to the neighbouring country had to suddenly stop on the way following the Centre’s decision to ban export of the vegetable after the heavy rains in many part of the country including Madhya Pradesh, Gujarat and several parts of Maharashtra, spoiling the crops besides rising inflationary trends.

Besides Bangladesh, UAE, Malaysia, Sri Lanka and several other countries in the middle east are the top importers of Indian onions.

India is now expected to resume exports of onion in full swing to Bangladesh and other countries very soon. “While India will start exports of onion normally to other countries as well, the priority will be Bangladesh since it is our neighbour,” an insider familiar with the development told IndiaNarrative.com.

According to the Daily Star, the price of onions in Bangladesh has dropped considerably after the import of this vegetable started recently.

The newspaper added that trucks laden with onion, stranded at the Mohodipur land port, will also reach the Bangladesh market soon. This could reduce onion prices further in the country.

<strong>Onion export ban has created diplomatic issue earlier too </strong>

In 2019 too, India’s sudden decision to ban exports of onion had created a diplomatic issue between the two neighbours.

Bangladesh Prime Minister Sheikh Hasina during her visit to India in October 2019 had joked about the ban of this vegetable while speaking at an economic forum. “It has become difficult for us to get onions. I don't know why you stopped the supply. I've told my cook to make food without onions,” she said then. The Bangladesh PM also said that India should have given some notice before imposing a ban on the vegetable.

<strong>India-Bangladesh iron out issues </strong>

While there have been some serious hiccups between the two neighbours in the past, relations have eased and the recent summit between Prime Minister Narendra Modi and Hasina put a stamp on a new era of bilateral co-operation.

Modi has underlined the importance of Bangladesh in his “Neighbours First” policy. In his recent meeting with Hasina, he also stressed that Bangladesh has been his focus from the time he took charge as Prime Minister of India..

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

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