Government Allows Export of 99,150 MT Onion to Six Countries Amid Domestic Concerns
In a recent move, the Government of India has sanctioned the export of 99,150 metric tons (MT) of onions to six neighboring countries, namely Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. The decision comes against the backdrop of ensuring adequate domestic availability amidst concerns over lower Kharif and Rabi crops in the fiscal year 2023-24 compared to the previous year, coupled with an increase in demand in the international market.
The National Cooperative Exports Limited (NCEL) has been designated as the agency responsible for overseeing the export of onions to these countries. Operating through an e-platform, NCEL has sourced domestic onions for exportation at competitive prices, ensuring supply to the nominated agencies of the destination countries on a 100% advance payment basis. Notably, Maharashtra, as the largest onion producer in the country, plays a pivotal role as the primary supplier of onions procured by NCEL for export.
Furthermore, the government has permitted 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, geared solely towards export, incurs higher costs due to factors such as increased seed expenses, adherence to Good Agricultural Practices (GAP), and compliance with strict Maximum Residue Limits (MRL) requirements.
Meanwhile, in a bid to stabilize onion prices and ensure buffer stock availability, the Department of Consumer Affairs has set a procurement target of 5 lakh tons of onions from the Rabi-2024 harvest under the Price Stabilization Fund (PSF). Central agencies like the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) are collaborating with local agencies such as Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), and Primary Agricultural Credit Societies (PACs) to facilitate procurement, storage, and farmer registration processes.
To mitigate 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, with technical support from the Bhabha Atomic Research Centre (BARC) in Mumbai. A pilot initiative on onion irradiation and cold storage undertaken last year yielded promising results, with storage losses reduced to less than 10 percent.
In essence, these measures underscore the government’s commitment to balancing domestic needs with international trade demands, ensuring the stability of onion markets both at home and abroad.
