Bangladesh The impact of the ongoing political crisis in Bangladesh can be seen on the economy of India. Not only this, the impact of the coup in Bangladesh is being seen everywhere, from the stock market to everywhere else. Ever since Bangladesh Prime Minister Sheikh Hasina left the country, the army has taken over power. This has caused turmoil in the whole of Bangladesh and its impact is being seen on the economy there. Due to this, the business of Indian companies is also getting affected. However, an interim government has been formed within a few days of Sheikh Hasina leaving the post of Prime Minister, the responsibility of this new interim government has been handed over to Mohammad Yunus. But now amid this political crisis in Bangladesh, crores of Indian farmers are in trouble. It has created problems for the farmers and traders growing onions in India. Already, due to many restrictions, the situation was challenging for India’s onion export market and now the Bangladesh crisis has made it worse.
India exports onions to Bangladesh
In fact, India exports about 35% of its total onion production to Bangladesh. Horticulture Produce Exporters Association has stated that Bangladesh is an ideal export destination for us. Road connectivity ensures that our consignment reaches Bangladesh within 1-4 days. This helps us keep our transportation and overall export expenses under control.
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Farmers and traders are struggling regarding onion export
India’s onion farmers and traders have been struggling with onion exports since August 2023. Last year, the Indian government imposed a 40% export duty on onions to keep domestic supplies and prices in check amid speculation of a sharp rise in onion prices. After this, in December 2023, the Indian government imposed a complete ban on onion exports. However, the complete ban on onion exports was lifted only in May 2024. But the government imposed a 40% export duty and a minimum export price (MEP) of $550 per tonne. Onion exporters claim that these restrictions have severely affected onion exports and total onion exports have declined by 50%. In 2023 alone, onion export restrictions have led to a cumulative loss of Rs 10,000 crore to various stakeholders ranging from farmers to traders and daily wage workers involved in sorting and packaging onions for export.
How much loss due to Bangladesh crisis
The unrest in Bangladesh has made the matter worse. Bangladesh is India’s largest trade partner of onions. According to the Government of India, in 2021-22, India exported 15.37 lakh metric tonnes of onions, out of which 6.58 lakh metric tonnes were exported to Bangladesh alone. After this, in 2022-23, India exported 25.25 lakh metric tonnes of onions, out of which 6.71 lakh metric tonnes of onions were sent to Bangladesh. Apart from this, in 2023-24, India exported 17.17 lakh metric tonnes of onions, in which Bangladesh’s share was 7.24 lakh metric tonnes.