The Indian government has permitted the export of 99,150 metric tons of onions to six neighbouring countries – Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
This move comes amid an estimated lower production of onion crops during the Kharif and Rabi seasons of 2023-24 compared to the previous year, as well as increased demand in the international market.
The National Cooperative Exports Limited (NCEL), the designated agency for onion exports to these countries, will source domestic onions through an e-platform at L1 prices and supply them to the agencies nominated by the respective governments on a 100% advance payment basis.
The offer rate will consider the prevailing prices in the destination markets as well as the domestic and international markets.
Additionally, the government has allowed the export of 2,000 metric tons of white onions cultivated specifically for export markets in the Middle East and some European countries.
These white onions have higher production costs due to factors like higher seed costs, adoption of good agricultural practices (GAP), and compliance with strict maximum residue limits (MRL) requirements.
To ensure adequate domestic availability, the government has set a procurement target of 5 lakh tons of onions from the Rabi-2024 crop under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs.
Central agencies like NCCF and NAFED are collaborating with local agencies such as FPOs, FPCs, and PACs to support procurement, storage, and farmer registration.
Furthermore, in an effort to reduce storage losses, the Department of Consumer Affairs has decided to enhance the quantum of onion stocks to be irradiated and cold-stored from 1,200 metric tons last year to over 5,000 metric tons this year, with technical support from BARC, Mumbai.
A pilot project on onion irradiation and cold storage undertaken last year demonstrated a reduction in storage loss to less than 10 percent.