Export area explained
India: the largest onion exporter in the world
Every week we look at an important country in the onion sector. This week: India. A country with a huge production of onions. India exports the most onions in the world. What influence does the country have as a competitor on the global onion market?
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Choose the subscription that suits youOnions are an important product in Indian cuisine. With more than 1,3 billion inhabitants, the need for onions is enormous. Onion production in India is so large that consumption needs can normally be met. In fact; India also has a lot of onions left over and is the largest exporter in the world.
National product
With an area that is 1/3 of the whole of Europe, India has many different growing areas, each with their own harvest period. This allows India to supply onions all year round. India mainly grows pink onions. All these pink onions are grown in many different shapes and sizes. Each growing area has its own specialty. In addition, India also grows (a much smaller portion) red onions.
The government regulates the export of Indian onions. When onion prices are very high, the government turns off the export tap. This is to ensure that residents can buy affordable onions. When onion prices are very low, the Indian government turns on the tap.
Competitor
India is a formidable competitor in the world export market. Yet the Netherlands and India do not always get in each other's way, because both countries focus on different areas. The export of Indian onions mainly focuses on Southeast Asia, the Middle East and East Africa. Many countries served by India are not interesting for the Dutch market, because these countries are difficult to reach for Dutch exporters and people in these countries are used to the characteristic Indian onions.
If the government turns off the export tap or there is a crop failure in India, this offers opportunities for the Netherlands. A good example is the additional sales to the Middle East at the end of last year. Because there were too few onions in India, there was a peak in the export of Dutch onions to Middle Eastern countries from week 48 to week 51. The Netherlands also benefited from a shortage of red onions in India at the end of last year.
All in all, India is a good competitor for Dutch exports. Both countries often fish in a different pond. However, if India (temporarily) exports fewer onions, Dutch export companies will willingly take over in certain sales areas.
India has 1,3 billion inhabitants and is 79 times the size of the Netherlands (3.287.000 km2).