Central government has decided to extend the export ban on onions till further orders to ensure price stability.
New Delhi: In a step towards controlling the onion prices in the country, the central government has extended the export ban on onions until further orders. The decision has been taken in order to increase domestic availability and price stability amid the festive season in India. Earlier, the center had decided to prohibit exports until March 31 of this year.
For the uninformed, the government banned the export of onions. In the 2023 rabi season, onion production was estimated to be at 22.7 million metric tons last year. The export of onions to friendly countries is allowed on a case-by-case basis after approval from the inter-ministerial group.
“Export prohibition on export of onions valid till 31st March 2024, is extended until further orders,” the Directorate General of Foreign Trade (DGFT) has said in a notification dated March 22. DGFT is an arm of the ministry that deals with exports and imports-related issues.
Govt Allows Export of Onion To Bangladesh, UAE With Riders
The government has earlier allowed the export of 64,400 metric tons of onion to the UAE and Bangladesh through National Cooperative Exports Ltd (NCEL), according to notifications issued by the Directorate General of Foreign Trade (DGFT). The export of 50,000 metric tons of onion is being allowed for Bangladesh, while another 14,400 metric tons are being permitted for dispatch to the UAE.
To control prices, the government has taken several steps. It had imposed a minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 until December 31, 2023. In August, India imposed a 40 per cent export duty on onions up to December 31, 2023. CeNotably, onion is a politically sensitive commodity.
The notification states that the modalities for the exports to Bangladesh will be worked out by the NCEL in consultation with the Department of Consumer Affairs. The government wants the exports to take place in a calibrated manner, as it is keeping a close watch on domestic prices and does not want them to spin out of control.
The notification allowing the export of 14,400 tonnes of onions to the UAE through NCEL has placed a quantity ceiling of 3,600 metric tonnes for each quarter.
(With inputs from agencies)