India's state-owned export agency National Cooperative Export Ltd (NCEL) will buy 1,650 tonnes of onions at Rs 29 a kilogramme (kg) from private traders for exports to Bangladesh, The Economic Times reported today quoting unnamed industry people.

This will be the first official export of the key kitchen staple from India in more than three months since the country banned its export from December 8 to March 31.

In the first week of March, India allowed the export of 50,000 tonnes of onions to Bangladesh.

India's ban on onion exports aimed at tempering rising domestic prices had triggered a crash in domestic prices.

It also led to a sharp increase in international prices as non-availability of Indian onions led to a global shortage.

The demand from India's traditional buyers like Bangladesh, the Middle East and some countries from Southeast Asia is at its peak during the ongoing Ramadan season.

Onion exporters had recently written to the Indian government claiming that huge quantities of onions - more than 50 percent of trade during normal times - were smuggled out of the country since the export ban last year, according to The Economic Times.

Onion prices in wholesale markets of Maharashtra's Nashik district range from Rs 7 to Rs 16 a kg.

Prices may soften further with the arrival of fresh Rabi harvest.

The price which NCEL will charge onion buyers in Bangladesh could not be ascertained, said The Economic Times, quoting industry insiders.

The export agency is expected to make considerable profits as onions are currently selling at Rs 80-90 a kg in Bangladesh.