Currently, Malaysia is the only viable market, says exporter
Political instability in Bangladesh continues to weigh heavily on Indian onion exports, exporters said, warning that the coming weeks could be particularly difficult.
A prominent exporter told that the situation has turned “very dire”, with Bangladesh’s political uncertainty effectively shutting the door on exports to the neighbouring country. “The Gulf markets are already saturated with cargo from Iran and have now become largely self-reliant. Saudi Arabia is growing its own onions, while Indonesia has given only a very limited quota. Currently, Malaysia is the only viable market,” the exporter said.
Strong Pak crop
Exporters said Pakistan’s strong crop this season has further squeezed India’s export prospects. “Even though India has a good crop, exports are low. The new crop has not even started in full, and March is going to be a very difficult month,” another exporter said.
According to exporters, pricing pressures have added to the problem. “Every time Indian rates come down, Pakistan cuts prices by another $30 a tonne, which makes it impossible for us to compete,” one exporter said, adding that what he described as poor export practices had hurt Indian shipments. Besides, a weaker Pakistani currency is not helping Indian exports either.
The situation has been compounded by a shortage of container inventory. Exporters said the availability of containers has dropped sharply as shipping lines have incurred losses through the year.
Freight costs have also eroded margins. Freight to Port Klang in Malaysia is currently around $550 dollars, exporters said, noting that shipping lines receive no onward cargo from the port, making it difficult even to break even at those rates.
Exporters cautioned that container availability could worsen further with schedule changes linked to the Chinese New Year, making it increasingly difficult to secure boxes in the coming weeks.
Published on January 7, 2026
