Centre permits export of 99,150 tonnes of onion to 6 countries

As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export

April 28, 2024

Centre allows onion export to Bangladesh, UAE, Sri Lanka, Bhutan, Bahrain & Mauritius

The government has allowed the export of 99,150 metric tonnes of onion to six countries — Bangladesh, UAE, Bhutan, Bahrain, Mauritius and Sri Lanka, the Ministry of Consumer Affairs said on Saturday.

The government had also allowed the export of 2,000 metric tonnes (MT) of white onion cultivated especially for export markets in the Middle East and some European countries.

Being purely export-oriented, the production cost of the white onion is higher than other onions due to higher seed cost, adoption of good agricultural practice (GAP), and compliance with strict maximum residue limits (MRL) requirements.

The National Cooperative Exports Limited (NCEL), the agency for the export of onion to these countries, sourced the domestic onions to be exported through the e-platform at L1 prices and supplied to the agencies nominated by the government of the destination country at the negotiated rate on 100 percent advance payment basis, according to the Food Ministry statement.

In order to reduce the storage loss of onions, the Department of Consumer Affairs decided to enhance the quantum of stocks to be irradiated and cold stored from 1,200 MT last year to over 5,000 MT this year, with technical support from BARC, Mumbai.

Earlier, onion export faced a ban to ensure adequate domestic availability and keep prices in check as the output of both the Kharif and Rabi crops in 2023-24 are estimated to be lower as compared to the previous year and demand has increased in the international market.

The offer rate of NCEL to the buyers takes into account the prevailing prices in the destination market and also international and domestic markets. The quotas allocated for export to the six countries are being supplied as per the requisition made.

The procurement target for onion buffer out of Rabi-2024 under the Price Stabilization Fund (PSF) of the Department of Consumer Affairs has been fixed at 5 lakh tonnes this year. The Central Agencies, viz., NCCF and NAFED are tying up local agencies such as FPOs/ FPCs/ PACs to support the procurement, storage, and farmers’ registration to begin the procurement of any store-worthy onion.

As the largest producer of onion in the country, Maharashtra is the major supplier of onions sourced by NCEL for export. A high-level team of the Department of Consumer Affairs, NCCF, and NAFED visited Nashik and Ahmednagar Districts of Maharashtra from April 11-13, 2024 to create awareness among the farmers, FPOs/ FPCs and PACs about the procurement of 5 LMT of onion for PSF buffer.

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