The central government has made a significant decision to allow the export of 99,150 tonnes of onions to six countries, despite the ban on onion exports that was imposed on December 8, 2023. This move comes in response to the increasing demand in the international market and the projected lower production of onions in the upcoming Kharif and Rabi crop seasons.
The Ministry of Consumer Affairs, Food and Public Distribution has stated that the government has permitted the export of onions to Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. National Cooperative Export Limited (NCEL) has been designated as the agency responsible for exporting onions to these countries, procuring domestic onions through an e-platform.
Additionally, the government has allowed the export of 2,000 tonnes of specially grown white onions for the export markets of West Asia and some European countries. The production cost of white onions is higher due to various factors, including high seed costs and compliance with strict maximum residue limit requirements.
To ensure domestic stability, the government has set a target to procure 5 lakh tonnes of onions under the Price Stabilization Fund for the Rabi-2024 season. Central agencies like National Cooperative Consumer Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) are working with local agencies to support procurement, storage, and farmer registration.
Overall, this decision by the government aims to balance the needs of the domestic market with the demands of the international market, ensuring stability and profitability for onion producers in the country.