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India’s onion export industry is facing a sharp downturn as key buyers Bangladesh and Saudi Arabia reduce imports and turn to alternative suppliers like Pakistan and China. According to The Economic Times, India’s repeated export bans to control domestic prices have pushed traditional buyers to seek new sources and even develop self-sufficiency using Indian onion seeds. Experts note that Bangladesh, once importing nearly three-quarters of India’s total onion exports, has drastically cut purchases in the past eight months despite high domestic prices. Saudi Arabia has also limited imports for nearly a year, preferring cheaper onions from Yemen and Iran. Exporters say India’s absence from the global market during export bans allowed competitors to capture market share. Officials warn that India’s dominance in the global onion trade is weakening as former buyers become producers themselves, posing long-term risks to Indian farmers and exporters.

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