India to export 99,500 tons of onions to 6 countries

India to export 99,500 tons of onions to 6 countries
27 Apr 2024

The Indian government has approved the export of 99,500 tons of onions to six neighboring countries.

The Ministry of Consumer Affairs, Food & Public Distribution confirmed in an official statement, that these onions are primarily sourced from Maharashtra.

The recipient countries include Bangladesh, UAE, Bhutan, Mauritius, Bahrain, and Sri Lanka.

This decision comes after the export prohibition was first implemented on December 8, 2023, due to a surge in international demand and a need to maintain domestic supply.

NCEL procured onions at L1 prices
Crop estimates

The decision to resume exports was influenced by lower crop estimates for Kharif and Rabi in 2023-24, compared to the previous year.

National Cooperative Exports Limited (NCEL), responsible for overseeing onion exports, procured the onions via an e-platform at L1 prices.

The official statement emphasized that NCEL has supplied to the agencies nominated by the government of the destination country, at the negotiated rate on a 100% advance payment basis.

Tons of white onions also approved for export
Special exports

In addition to regular onions, the Indian government has also approved exports of 2,000 tons of white onion.

These are specifically cultivated for markets in the Middle East and certain European countries.

The official statement clarified that "Being purely export-oriented, the production cost of the white onion is higher than other onions due to higher seed cost, adoption of good agricultural practice (GAP) and compliance to strict maximum residue limits (MRL) requirements."

Five lakh tons of onion to be procured for buffer
Procurement plan

The procurement target for onion buffer from the Rabi crop 2024, under the Price Stabilization Fund (PSF) of the Department of Consumer Affairs, is set at five lakh tons.

Central agencies are collaborating with local bodies to facilitate procurement, storage, and farmer registration.

In April 2024, a high-level team visited Maharashtra's Nashik and Ahmednagar districts to raise awareness about procuring tons of onion for buffer stock.

DCA to increase stocks that are to be cold stored
Storage strategy

To minimize storage loss, the Department of Consumer Affairs plans to increase the stocks to be irradiated and cold stored, from 1,200 tons in 2023 to over 5,000 tons this year.

This initiative is part of a broader strategy aimed at ensuring a stable supply of onions in the domestic market.

The department's efforts are in response to data from the Union Agriculture Ministry, indicating a decrease in onion production for 2023-24 compared to the previous year.