In a bid to address domestic supply concerns and stabilize prices, the Indian government has given the green light for the export of 99,150 metric tonnes of onions to six countries – Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.
The Ministry of Consumer Affairs announced this decision to regulate exports, as the output of both the Kharif and Rabi onion crops for 2023-24 is estimated to be lower than the previous year, while international demand has increased.
The National Cooperative Exports Limited (NCEL) has been tasked with facilitating the export process. By sourcing onions from Maharashtra, the largest onion-producing state in the country, the NCEL will fulfill the requirements of the designated agencies in the destination countries. The transactions will be carried out on a 100 percent advance payment basis.
The export quotas for the six countries will be provided based on requisitions, taking into account prevailing prices in the destination market as well as international and domestic market trends. In addition, the government has permitted the export of 2,000 metric tonnes of white onions specifically cultivated for markets in the Middle East and certain European countries.
To mitigate storage losses, the Department of Consumer Affairs plans to increase the quantity of onions subject to irradiation and cold storage from 1,200 metric tonnes to over 5,000 metric tonnes this year. This initiative aims to reduce storage losses to less than 10 percent and has been successful in previous pilot projects.
This decision to allow onion exports, coupled with storage enhancement efforts, seeks to strike a balance between domestic availability and international demand while ensuring stable prices in the market.
