A significant trade crisis has emerged at the Indian-Bangladesh border crossings following the Bangladesh government's decision to suddenly suspend onion imports to protect its local farmers.
At least 30,000 tonnes of onions, worth crores of rupees, were stockpiled by Indian exporters near key borders, including Ghojadanga, Petrapole, Mahadipur, and Hili, based on verbal assurances from Bangladeshi importers.
The suspension has caused the onions to start rotting, forcing exporters to hire over a hundred laborers daily to separate the good stock from the damaged one.
To minimize losses, Indian exporters are selling the stockpiled onions in the local market at extremely low prices. On Friday, at the Mahadipur-Sonamasjid border, onions were selling for as low as Rs 2 per kg, with a 50-kg sack fetching only Rs 100.
Exporters incurred a cost of approximately Rs 22 per kg (Rs 16 purchase price in Nashik plus transport/handling). If exported to Bangladesh, they expected Rs 30–32 per kg, yielding a profit of Rs 8–10 per kg. Instead, they are realizing massive losses by selling at Rs 2 to Rs 10 per kg.
While Mahadipur border buyers are getting onions for Rs 2 per kg, the retail price in Malda's markets, just 7km away, remains high at Rs 20–22 per kg. Indian traders noted that demand for onions in Bangladesh is typically high this time of year, with prices currently around Tk 100 per kg in Bangladesh.
Traders referenced a November 16th notice from the Bangladeshi import-export group indicating that Bangladesh's Department of Agricultural Extension had been restricting import permits for some time.
Traders are urging both the state and central Indian governments to intervene to prevent the situation from worsening.
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