The government has allowed the export of 64,400 tonnes of onions to the UAE and Bangladesh through National Cooperative Exports Ltd (NCEL), with specific quantities allotted for each country, the commerce ministry said.
“Export of 14,400 tonnes of onions, with a quantity ceiling of 3,600 MT (metric tonnes) quarterly, to UAE through NCEL is notified,” directorate general of foreign trade (DGFT), a division of the commerce ministry, announced in the notification.
Although the government on December 7, 2023, imposed a ban on onion exports till March 31 in a bid to cater to the demand for onions in domestic markets and stabilise its wholesale prices, the Centre allows a specified quantity to be exported to friendly nations.
These exports are permitted based on requests and permissions granted by the government.
Last year, on December 8, the government imposed a ban on onion exports until March 31 in order to increase domestic availability and control prices. In an effort to provide relief to consumers, the government also decided to sell buffer onion stock at a subsidized rate of Rs 25 per kg in retail markets. To further regulate prices, the government had previously imposed a minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 to December 31. Additionally, a 40% export duty on onions was in place until December 31, 2023.
Between April 1 and August 4 of this fiscal year, a total of 9.75 lakh tonnes of onions were exported from India. The top three importing countries in terms of value are Bangladesh, Malaysia, and the UAE. It is worth noting that onions are a politicallysensitive commodity. NCEL is a multi-state cooperative society, jointly promoted by well-known cooperative societies such as Gujarat Cooperative Milk Marketing Federation (GCMMF), Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak Bharati Cooperative Ltd (KRIBHCO), and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).