HS Code:
Subheadings 0712.20.20 and 0712.20.40 under the Harmonized System (HS) Code pertain to dried onions, whether or not sliced or in the form of pellets. Specifically, 0712.20.20 covers dried onions that are not further prepared, while 0712.20.40 includes onion powder or flour. These products are widely used in food processing, seasoning, and culinary applications globally. Trade in this category is influenced by agricultural production capacities, climatic conditions, and demand for processed food products.
Total Trade Volume
Approximately $250 million USD
Data from 2022
Source
United Nations Comtrade Database and ITC Trade Map
$80 million USD
32% of total trade of total trade
Increasing
$60 million USD
24% of total trade of total trade
Stable
$40 million USD
16% of total trade of total trade
Increasing
$25 million USD
10% of total trade of total trade
Increasing
$20 million USD
8% of total trade of total trade
Stable
Average Rate
6.5% ad valorem
Highest Rate
29.8% (applied by certain countries under specific trade agreements or protective measures)
Lowest Rate
0% (under free trade agreements like EU-India FTA for specific partners)
Rising demand for processed and convenience foods
Increased exports of dried onion products, especially powder and flakes, to meet the needs of ready-to-eat meal manufacturers.
2021-2022
Shift towards organic dried onions
Growing consumer preference for organic and natural food ingredients has led to a niche but expanding market for certified organic dried onions.
2020-2022
Supply chain disruptions due to climate change
Erratic weather patterns in key producing regions like India and Egypt have caused fluctuations in supply, affecting global prices.
2022
India, a leading exporter, introduced temporary export restrictions on dried onions to stabilize domestic prices amid a supply shortage caused by unseasonal rains.
October 2023
Short-term reduction in global supply, leading to price spikes in importing countries.
The European Union implemented stricter phytosanitary checks on dried vegetable imports, including onions, to prevent pest contamination.
January 2023
Increased compliance costs for exporters, potentially slowing trade to EU markets.
A new phase of the US-China trade agreement reduced tariffs on certain agricultural products, including dried onions, boosting bilateral trade.
March 2023
Increased export opportunities for Chinese dried onion producers targeting the US market.