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📦 Onions and shallots

Onions and shallots

HS Code:

📦

Overview

Onions and shallots, classified under HS Code 070310, encompass fresh or chilled bulbs used primarily as vegetables or for seasoning in culinary applications worldwide. This category includes common onions (Allium cepa) and shallots (Allium ascalonicum), which are staple ingredients in various cuisines. The global trade of onions and shallots is significant due to their widespread consumption, varying climatic requirements for cultivation, and differing regional production capacities. Trade patterns are influenced by seasonal availability, regional demand, and logistical considerations such as storage and transportation conditions to maintain freshness.

Total Trade Volume

10.5 million metric tons

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

35% (applied by certain South Asian countries to protect domestic markets)

Lowest Rate

0% (under various free trade agreements such as EU internal trade)

Common Restrictions

  • Import quotas to protect domestic farmers
  • Phytosanitary requirements to prevent pest and disease spread
  • Seasonal import bans in producing countries
  • Quality standards for size and condition

Market Trends

Increasing demand for organic onions

Higher prices for certified organic products, encouraging farmers to shift to organic farming practices

2021-2022

Growth in processed onion products

Rising exports of dehydrated onions and onion powder, particularly to North America and Europe

2020-2022

Climate change affecting yields

Unpredictable weather patterns leading to supply shortages in key producing regions, driving price volatility

2019-2022

Recent Developments

India Lifts Onion Export Ban

India, a major onion exporter, lifted its export ban in early 2023 after domestic prices stabilized, aiming to regain market share lost to competitors during the restriction period.

March 2023

Increased supply in global markets, potentially lowering prices and benefiting importing countries in South Asia and the Middle East.

EU Tightens Phytosanitary Rules

The European Union introduced stricter phytosanitary regulations for onion imports to prevent the spread of pests like onion thrips, requiring additional certifications from exporters.

January 2023

Increased compliance costs for exporters, potentially reducing trade volumes from non-compliant regions.

Netherlands Expands Storage Capacity

The Netherlands invested in advanced cold storage facilities to extend the shelf life of onions, strengthening its position as a leading exporter by ensuring year-round supply.

October 2022

Enhanced ability to meet off-season demand in key markets, likely increasing export volumes.