New Delhi: In a significant move, the Indian government has authorized the export of 99,150 tonnes of onions to six countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes despite the ongoing ban on onion exports, which was implemented on December 8, 2023, to combat domestic shortages.
The Ministry of Consumer Affairs, Food, and Public Distribution announced that the export of onions has been selectively permitted to ensure continued diplomatic trade relations with these nations. The ministry’s statement highlighted that the National Cooperative Export Limited (NCEL) has been entrusted with the task of procuring and exporting the onions through an e-platform.
In addition to the red onions, the government has also green-lighted the export of 2,000 tonnes of white onions, a variety specifically cultivated for the export markets of West Asia and some European countries. These onions are known for their unique flavor and higher market value due to the stringent agricultural practices and compliance with maximum residue limits required for international trade.
The export restrictions were initially put in place as a measure to ensure sufficient domestic supply, given the lower production estimates for the Kharif and Rabi seasons in 2023-24 compared to the previous year. The move to allow limited exports is seen as a balance between maintaining domestic supply and fulfilling international commitments.
The NCEL, which operates under the government’s guidance, has been actively procuring onions from domestic markets at competitive prices to fulfill the export orders. The agency ensures that the onions are supplied to the nominated agencies of the importing countries based on advance payments and negotiated rates that reflect both the international and domestic market prices.
This strategic export allowance is expected to strengthen trade ties with the importing countries while also supporting Indian farmers by providing them with an international market for their produce. The government continues to monitor the domestic onion supply closely and has set a procurement target for the onion buffer stock under the Price Stabilisation Fund for the upcoming season.
