Exporting Onions From India - A Comprehensive Guide

India is a land of agriculture, and one such agricultural product that India produces and exports in large quantities is ONIONS.

As APEDA states, India is the second-largest producer of onions in the world. The export proportions of Indian onions were also high, but they dropped for a few years due to bans and import duties.

But onion exports remain an important business for India, mainly because countries in the Middle East, Asia, and Europe demand them in large numbers, especially the red onion variety.

Moreover, the export business is also profitable for onion exporters if it is managed with proper sourcing, compliance, logistics and understanding of the market.

In order for you to better understand the onion export business, we have curated this detailed blog that covers :

The global demand trends for onions, their domestic supply, top destination countries, export procedures, and recent policy changes.

How the Global Onion Market is Evolving

The global demand for onions has remained steady. Onions are consumed throughout the year, irrespective of the seasonal changes. Countries like India, China, the Netherlands, Mexico & USA are major contributors to onion exports across the world, while China, India, Egypt, the USA, and Turkey are the largest onion producing countries.

The importers heavily rely on these countries for onion supply as they face supply constraints and high domestic production costs.

Based on stats, the onion export value significantly rose from 2019 to 2023, where it crossed $5 billion before experiencing a slight dip in 2024, which was mainly due to export curb restrictions on onions in India.  

Why Are Countries Preferring Indian Onions?

According to data by Sea Air EXIM Solution, in 2023-24 alone, India recorded around 819,800 shipments to more than 31,000 buyers globally.

Why?

Because Indian onions are widely preferred in global markets due to their strong pungency, rich flavour, and consistent quality.

Moreover, their year-round availability, with harvesting across two cycles, and a wide range of onion varieties to meet different market preferences, allows exporters to maintain a steady supply throughout most of the year. 

These trends make onion export from India an attractive opportunity for exporters who can ensure quality, timely delivery, and long-term profitability.

Why Exporting Onions from India Is Profitable?

So, is exporting onions from India actually profitable? The answer lies in a few key factors that support consistent returns.

• India’s high production volumes and relatively low cultivation costs allow exporters to offer competitive pricing to global buyers.

• Onions are used daily across the world, creating consistent demand throughout the year, especially in countries that do not produce enough onions to meet domestic demands.

• Indian onions enjoy good shelf life and reliable harvest cycles, making them well-suited for export.

• Recent policy relaxations, which include the removal of export duties, have improved export feasibility and pricing competitiveness significantly. 

These factors contribute significantly to many reasons why onion exports can be a profitable business. 

India’s Onion Market Overview

India’s onion production occurs across many states. The production volume supports both domestic consumption and export demand.

A few states stand out as major onion producers. According to industry data, Maharashtra is the leading producer, followed by Madhya Pradesh, Karnataka, and Gujarat, contributing significant shares to national output.

These states benefit from a favourable climate, soil, and established supply chains. For exporters, sourcing onions from these states ensures better quality, volume and consistent supply.

Moreover, a lot of Gulf and Middle Eastern countries rely heavily on Indian Onions. And due to them being in close proximity, it gives India a strong export advantage, as onions can be shipped within a few days, thus helping maintain freshness and quality. We’ll cover more of this below.

India’s Top Onion-Producing States

Let’s study the top onion-producing states in India in detail. 

• Maharashtra: Maharashtra, which contributes close to 43% of India’s onion production, is the highest onion-producing state in India.

  
  

  Key growing regions here are Nashik, Ahmednagar, Satara, Pune & Jalgaon. Most export consignments are sourced from here.
  

• Madhya Pradesh: Another major onion-producing state, which contributes 16% of the onion production in India, with Indore, Ujjain, Mandsaur and Vidisha being key growing regions.
  

• Karnataka: Karnataka produces onions and contributes to the supply, especially during the off-season for other states. Chitradurga, Belagavi, Bagalkot, Kolar and Bijapur are the main growing areas. 
  

• Gujarat: Known for certain onion varieties and contributes to export volume, especially for processed or white onion segments. The key regions for onion production in this state are Bhavnagar, Rajkot, Junagadh, Mehsana, Banaskantha, & Surat.

  
  

  For exporters, having multiple supply sources in multiple states helps in managing fluctuations in yield, climate impact and ensures a continuous supply.

Top Countries to Which India Exports Onions

Indian onions are valued worldwide for their distinct flavour, crisp texture, and long shelf life. From strong red onions to mild white varieties, India offers a wide and diverse export range to suit different market preferences.

As a result, India exports onions to several countries, with major destinations including Bangladesh, Malaysia, the United Arab Emirates (UAE), Sri Lanka, Nepal, Indonesia, Saudi Arabia, and other Middle Eastern and Southeast Asian markets.

Leading Onion Exporting Countries Globally

When it comes to leading onion-exporting countries globally, few countries stand out as prime sources. It includes:

• Netherlands

• India

• China 

• Mexico

• United States Of America

• Pakistan

• Spain

Step-by-Step Onion Export Process from India

Exporting onions successfully requires compliance with several procedures. Here is a step-by-step overview:

Step 1: Obtain Import-Export Code (IEC)

Every exporter must hold a valid IEC issued by the Directorate General of Foreign Trade (DGFT). IEC is mandatory for export shipments.

Step 2: Register with Relevant Export Authorities

Register with regulatory bodies such as the Agricultural and Processed Food Products Export Development Authority (APEDA) if required, depending on export product category and destination requirements.

Step 3: Identifying Quality Sourcing partner & Sorting & Grading

Choosing the right source for onion export or supply might look like a daunting task at first. We have earlier discussed the top Indian states that produce onions in large quantities. Your major source of onions should be from those regions.

Within these regions, you will find a number of Mandis, farms, Traders and Merchants. Get in touch with them, check the variety of onions they have on offer, the sizes and the pricing as well.

Once you have finalised who your sourcing partner is, you need to sort and grade the onions as per the quality standards. Make sure you use appropriate grading, sizing and outer-skin standards to ensure longer shelf-life and meet buyer expectations.

Step 4: Choosing the Right Packaging and Cold-Chain / Warehouse Handling

For onions, there are a number of packaging options that you can choose from, which include Mesh and jute bags, Corrugated Boxes, PP bags and Vacuum & HDPE Packs. Among these, Mesh and jute bags are the most widely used as they offer excellent air flow, preventing rot. 

The Common packaging sizes are 5kg, 10kg, 15kg, 20kg, 25kg and 50 kg. The packaging also depends on the onion sizes and the destination country. The most common onion sizes range from 25-30mm(small onion), 40-60mm(medium and most preferred) and 60-70mm(large onion). 

Also, prepare for cold-chain or controlled-environment handling if required by the destination country.

Step 5: Documentation & Compliance

There are certain documents that need to be kept ready when you are exporting to another country. This list mainly includes:

• Importer-Exporter Code (IEC)

• Phytosanitary Certificate

• Certificate of Origin

• Commercial Invoice & Packing List

• Bill of Lading / Airway Bill

• FSSAI Clearance

• Insurance (optional but useful)

Role of a Custom House Agent (CHA) in Onion Exports

Sometimes, handling all the documentation and paper can get very messy, especially if you are exporting for the first time. In such a case, hiring a Custom House Agent is the right choice. 

A Custom House Agent (CHA) plays an important role in ensuring smooth onion exports from India. Once your documents are ready, the CHA acts as a bridge between the exporter, customs authorities, and port officials.

They handle customs filing, duty-related formalities, and ensure that all export documents are submitted correctly.

The CHA also assists with customs clearance, container movement, and coordination at the port, thus helping avoid delays, penalties, or shipment holds due to documentation errors.

By working with an experienced CHA, exporters can save time, reduce compliance risks, and focus more on sourcing and buyer coordination.

Step 6: Transport, Logistics & Customs Clearance (With CHA Support)

Once all documents are ready, the next step is moving the onions from your warehouse or sourcing location to the port. This is where transporters, logistics partners, and the Custom House Agent (CHA) work together.

The CHA coordinates with customs officials at the port and files the shipping bill on your behalf. They ensure that the container or cargo is examined (if required) and cleared by customs without delays.

At the same time, the logistics partner arranges container booking, stuffing of onions, proper ventilation, and timely movement to the port.

As an exporter, your role is mainly to stay in touch with the CHA and logistics team, confirm shipment schedules, and ensure that the cargo is loaded properly. 

Step 7: Shipment, Payment Terms & Post-Shipment Follow-Up

Once customs clearance is completed, the onions are shipped to the destination country, usually by sea freight. Air freight is used only for urgent orders. After the shipment leaves the port, documents like the Bill of Lading or Airway Bill are issued as proof of dispatch.

Payment Process

Payment terms are usually decided before shipping. Common options include advance payment, Letter of Credit (LC), or document-based payments like DP or DA. 

After shipment, the exporter submits the required documents to the bank, and payment is released as per the agreed terms. The CHA ensures all shipping documents are accurate, helping avoid payment delays.

Follow-Up

Once the shipment reaches the destination, the buyer completes customs clearance and receives the goods. Staying in touch with the buyer, confirming delivery, and collecting feedback helps build trust and secure repeat orders.

How can you Find Importers/Buyers In the International Market?

Finding reliable onion buyers or importers requires a mix of the right market focus and consistent outreach.

• Start by targeting countries that import onions in large quantities, as discussed earlier. At the same time, keep an eye on emerging markets where demand is gradually growing.

  
  

• Building a strong online presence also plays a big role. Ensure your company website looks professional and clearly explains what you export.

  
  

• You can further expand your reach by using import-export data tools, registering on global business portals, connecting with overseas trade agencies, and participating in trade fairs and exhibitions.

These channels help you get noticed by genuine buyers and build long-term export opportunities.

What You Need To Know About The Recent Update On Onion Export Bans

Earlier, the Indian government had imposed several restrictions and bans on onion exports to control domestic prices. These included export bans, minimum export prices (MEP), export duties, and quantity limits.

While these measures were aimed at protecting the local market, they made Indian onions less competitive in international trade.

As of April 1, 2025, the government has withdrawn the export duty on onions and eased earlier restrictions. This marks an important shift in export policy and signals a more exporter-friendly approach.

For exporters, this is a strong positive move. Indian onions can now be priced more competitively in global markets, leading to renewed demand from regions such as South Asia, the Middle East, and Southeast Asia.

Conclusion

Exporting onions from India presents a compelling business opportunity. With India’s large production capacity, competitive cost structure, diverse export-ready varieties and restored export policy environment, exporters like us can tap high global demand and secure profitable trade deals.

The key to success lies in sourcing good-quality produce, ensuring compliance, managing logistics efficiently, and aligning supply with demand cycles. With the right approach, onion export from India can deliver consistent returns and help build a strong global business presence.