HS Code:
Subheading 0712.20.40 of the Harmonized System (HS) Code pertains to dried onions, whether or not sliced or in the form of pellets, but not further prepared. This category includes dehydrated onion products used primarily in food processing, seasoning, and as ingredients in various culinary applications. These products are valued for their long shelf life and concentrated flavor, making them a staple in global food trade.
Total Trade Volume
Approximately $250 million USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC) Trade Map
$80 million USD
32% of total trade of total trade
Increasing
$45 million USD
18% of total trade of total trade
Stable
$30 million USD
12% of total trade of total trade
Increasing
$25 million USD
10% of total trade of total trade
Stable
$20 million USD
8% of total trade of total trade
Decreasing
Average Rate
8.5% ad valorem
Highest Rate
29.8% (applied by certain countries with protective agricultural policies)
Lowest Rate
0% (under free trade agreements like EU-India FTA or USMCA)
Rising demand for processed and convenience foods
Increased global demand for dehydrated onions as a key ingredient in ready-to-eat meals and snacks, driving export growth particularly from India and China.
2021-2022
Shift towards organic and non-GMO products
Growing consumer preference for organic dehydrated onions, leading to higher production costs but also premium pricing in markets like the EU and North America.
2020-2022
Supply chain disruptions due to geopolitical tensions
Trade restrictions and shipping delays have affected export volumes, particularly for smaller exporters reliant on specific trade routes.
2022
India introduced new export incentives under the Merchandise Exports from India Scheme (MEIS) to boost dehydrated onion exports, providing a 5% rebate on export value.
March 2023
Expected to increase India's market share by 3-5% over the next two years, intensifying competition with other exporters like China.
The European Union updated its phytosanitary requirements for imported dried vegetables, mandating stricter residue limits for pesticides on dehydrated onions.
January 2023
Smaller exporters may face compliance challenges, potentially reducing supply to the EU market in the short term.
As part of the Phase 1 trade deal, the US reduced tariffs on certain Chinese agricultural products, including dehydrated onions, from 15% to 7.5%.
February 2020 (reaffirmed in 2023)
Boosted Chinese exports to the US, though overall impact remains limited due to domestic US production.