Govt Allows Export Of 99,150 Metric Tons Of Onion To 6 Countries

The allocated export quotas for the six countries are fulfilled based on requests submitted by the respective destination countries

Onion Export

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The government said on Saturday that it has granted permission for the export of 99,150 metric tons of onions to six neighbouring countries, including Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka. This decision comes amidst a prohibition on onion exports to ensure sufficient domestic availability, given the anticipated lower Kharif and Rabi crops in 2023-24 compared to the previous year, coupled with heightened demand in the international market.

The National Cooperative Exports Limited (NCEL), designated the exporting agency for onions to these nations, procured domestic onions earmarked for export through an e-platform at the lowest available prices (L1). These onions were then supplied to the designated agency or agencies of the destination countries at negotiated rates, with payment required in full in advance. The pricing offered by NCEL to buyers reflects current market conditions in both the destination and international markets, as well as domestic rates. The allocated export quotas for the six countries are fulfilled based on requests submitted by the respective destination countries. Maharashtra, being the leading onion producer in the nation, serves as the primary source of onions procured by NCEL for export purposes, according to a press release by ministry of consumer affairs.

The government additionally permitted the export of 2000 metric tons of white onions, cultivated explicitly for export markets in the Middle East and certain European countries. White onion production is exclusively export-oriented, resulting in higher production costs than other onion varieties due to increased seed expenses, adoption of stringent Good Agricultural Practices (GAP), and compliance with strict Maximum Residue Limits (MRL) requirements, it states.

According to the ministry, this year, the procurement target for onion buffer from the Rabi-2024 crop under the Price Stabilisation Fund (PSF) of the Department of Consumer Affairs has been set at 500,000 tons. Central agencies such as NCCF and NAFED are collaborating with local entities like FPOs/FPCs/PACs to facilitate procurement, storage, and farmer registration for any storable onion variety. A high-level team comprising representatives from the Department of Consumer Affairs, NCCF, and NAFED visited Nashik and Ahmednagar Districts in Maharashtra from April 11 to 13, 2024, to raise awareness among farmers, FPOs/FPCs, and PACs regarding the procurement of 500,000 tons of onions for the PSF buffer.

To mitigate onion storage losses, the Department of Consumer Affairs has opted to increase the quantity of onions subjected to irradiation and cold storage from 1200 metric tons last year to over 5000 metric tons this year. Technical assistance from BARC, Mumbai, has supported this initiative. The pilot program for onion irradiation and cold storage initiated last year has demonstrated a reduction in storage losses to below 10 per cent.