Centre Allows 99,150 MT Onion Export To Six Countries Including Bangladesh, UAE

In a move aimed at balancing domestic needs with international demand, the Government of India has permitted the export of 99,150 Metric Tons (MT) of onions to six countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes against the backdrop of estimated lower Kharif and Rabi crops in 2023-24 compared to the previous year, coupled with increased demand in the international market.

The National Cooperative Exports Limited (NCEL), designated as the agency for onion exports to these nations, has procured domestic onions through an e-platform at L1 prices. These onions will be supplied to the nominated agencies of the destination countries at negotiated rates, with payment required in advance. Notably, Maharashtra, the largest onion producer in India, serves as the primary source of onions for export, facilitating NCEL’s supply chain.

Additionally, the government has authorized the export of 2000 MT of white onions, specifically cultivated for markets in the Middle East and certain European countries. The production of white onions, which is solely export-oriented, incurs higher costs due to factors such as expensive seeds, adherence to good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements.

Furthermore, in a bid to stabilize prices and ensure adequate buffer stock, the Department of Consumer Affairs has set a procurement target of 5 lakh tons of onions from the Rabi-2024 crop under the Price Stabilization Fund (PSF). Central agencies like the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) are collaborating with local agencies to facilitate procurement, storage, and farmer registration.

To address storage losses, the Department of Consumer Affairs has decided to expand the quantum of onions to be irradiated and cold stored from 1200 MT last year to over 5000 MT this year. This initiative, carried out with technical support from BARC, Mumbai, aims to reduce storage losses to less than 10 percent, building upon the success of last year’s pilot program.

In furtherance of these efforts, a high-level team comprising officials from the Department of Consumer Affairs, NCCF, and NAFED visited Nashik and Ahmednagar Districts of Maharashtra from 11th to 13th April 2024 to raise awareness among farmers and local agencies about the procurement of onions for the PSF buffer. These initiatives reflect the government’s commitment to managing the onion market effectively while meeting both domestic and international demands.