India had earlier prohibited the export of onions until March 2024, but now it has permitted the export to Bangladesh and the UAE.
New Delhi: Despite the existing prohibitions on the export of onions, the Indian government has allowed the export of 50,000 metric tons to Bangladesh and 14,400 metric tons to the United Arab Emirates (UAE). Keeping in mind the export regulations, the Foreign Trade’s Directorate General has laid out a stipulation for a quarterly cap of 3,600 metric tons for the UAE’s onion imports. Also, there are notable riders that are applicable to the exports.
As per the notification, modalities for the export of onion to Bangladesh shall be worked out by National Cooperative Exports Limited (NCEL) in consultation with the Department of Consumer Affairs.
Notably, India had earlier prohibited the export of onions until March 2024. The DGFT notification said the export of onions will be, however, allowed based on permission granted by the central government to other countries based on the requests made by the countries.
In August, the government imposed a 40 per cent duty on the export of onions to check price rises and improve supplies in the domestic market until December 31, 2023. The central government subsequently set a Minimum Export Price (MEP) of USD 800 per tonne on a free-on-board basis for the export of onions, with effect from October 29.
Riders To The Onion Export Decision
The central government had, though, exempted the export of ‘Bangalore rose onion’ from the export duty, with a small rider: goods meant for export shall be allowed to be exported subject to the exporter furnishing a certificate from the Horticulture Commissioner, Government of Karnataka, certifying the item and quantity of Bangalore rose onion to be exported. Bangalore rose onion is a variety of onion grown in and around Bengaluru, Karnataka. It got the coveted Geographical Indication tag in 2015.
Faced with rising onion prices, the central government has been releasing the staple vegetable from its buffer stock. The central government had earlier decided it would maintain 3 lakh tonne of onions in the 2023–24 season as buffer stock. In 2022–23, the government maintained 2.51 lakh tonne onion as buffer stock.
Buffer stock is maintained to meet any exigencies and for price stabilisation if rates go up significantly during the lean supply season. Rabi onion harvested during April–June accounts for 65 per cent of India’s onion production and meets the consumer’s demand until the Kharif crop is harvested in October–November.
(With inputs from agencies)