Onion Export Update : Centre Lifts Ban, Permits Export to 6 Neighbouring Nations After Over 4 Months
In December 2023, the government imposed a ban on the export of onions. However, the Centre has recently granted permission for the export of onions to six neighboring countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
Onion Export Update : The government has permitted the export of 99,500 tonnes of onions, primarily sourced from Maharashtra, to six neighboring nations, despite the ban on shipments. Additionally, exports of 2,000 tonnes of white onions specifically grown for markets in the Middle East and certain European countries have been authorized.
On December 8, 2023, the government imposed a ban on the export of onions. However, in an official announcement, the Ministry of Consumer Affairs, Food & Public Distribution disclosed that the government has granted permission for the export of 99,150 tonnes of onions to six neighboring countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This export restriction aims to maintain sufficient availability of onions within the country, given the anticipated lower Kharif and Rabi crops for the year 2023-24 in comparison to the previous year.
Onion Export Update : The ban was implemented due to a rise in demand in the global market, as stated. The National Cooperative Exports Limited (NCEL), responsible for exporting onions to these nations, procured domestic onions for export through an e-platform at the lowest prices (L1 prices). NCEL supplied onions to the designated agency or agencies appointed by the destination country’s government at negotiated rates, with payment required in full in advance. The pricing offered by NCEL to buyers considers prevailing prices in the destination market, as well as international and domestic market conditions.
The statement noted that the quota allocated for export to the six countries is being fulfilled based on requests from the destination countries. Maharashtra, as the largest onion producer in the country, is the primary source of onions supplied by NCEL for export. Additionally, the government permitted the export of 2,000 tonnes of white onions specifically cultivated for export markets in the Middle East and certain European countries.
Onion Export Update : Regarding white onions, their production cost is higher than other varieties due to factors such as increased seed expenses, adherence to good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements, as outlined in the statement.
Furthermore, for the Rabi crop of 2024, the procurement target for the onion buffer under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been set at 5 lakh tonnes. Central agencies like NCCF and NAFED are collaborating with local agencies such as FPOs/FPCs/PACs to facilitate procurement, storage, and farmer registration for the procurement of storable onions.
Onion Export Update : A high-level team comprising representatives from the Department of Consumer Affairs, NCCF, and NAFED conducted a visit to Nashik and Ahmednagar districts of Maharashtra from April 11-13, 2024. Their objective was to raise awareness among farmers, FPOs/FPCs, and PACs about the procurement of 5 lakh tonnes of onions for the buffer stock.
In an effort to minimize storage losses of onions, the department has decided to increase the quantity of stocks to be irradiated and cold stored from 1,200 tonnes last year to over 5,000 tonnes this year. This initiative is being undertaken with technical assistance from BARC, Mumbai. The pilot program of onion irradiation and cold storage initiated last year has demonstrated a reduction in storage losses to less than 10%, according to the statement.
Onion Export Update : In March, the Union Agriculture Ministry released data on onion production. The data suggests that onion production in 2023-24 (First Advance Estimates) is anticipated to be approximately 254.73 lakh tonnes, compared to around 302.08 lakh tonnes the previous year. This decline is attributed to a decrease of 34.31 lakh tonnes in output in Maharashtra, 9.95 lakh tonnes in Karnataka, 3.54 lakh tonnes in Andhra Pradesh, and 3.12 lakh tonnes in Rajasthan, as indicated by the data.
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